UNITED  STATES
     SECURITIES  AND  EXCHANGE  COMMISSION
     Washington,  D.C.  20549

     SCHEDULE  13D

     Under  the  Securities  Exchange  Act  of  1934
     (Amendment  No.  2)

     THE  DIANA  CORPORATION
     (Name  of  Issuer)

     Common
     (Title  of  Class  of  Securities)

     252790100
     (CUSIP  Number)

Dawson-Samberg Capital Management, Inc., 354 Pequot Ave., Southport CT  06490
 203/254-0091
     (Name,  Address  and  Telephone  Number  of  Person
     Authorized  to  Receive  Notices  and  Communications)

     January  1,  1997
     (Date  of  Event  which  Requires
     Filing  of  this  Statement)

If  the  filing  person  has  previously  filed a statement on Schedule 13G to
report  the  acquisition  which  is  the  subject of this Schedule 13D, and is
filing  this  schedule because of Rule 13d-1(b)(3) or (4), check the following
box  o.

Check  the following box if a fee is being paid with this statement o.  (A fee
is not required only if the reporting person:  (1) has a previous statement on
file  reporting beneficial ownership of more than five percent of the class of
securities  described  in  Item  1;  and (2) has filed no amendment subsequent
thereto reporting beneficial ownership of five percent or less of such class.)
 (See  Rule  13d-7.)

NOTE:    Six copies of this statement, including all exhibits, should be filed
with  the  Commission.  See Rule 13d-1(a) for other parties to whom copies are
to  be  sent.

*The remainder of this cover page shall be filled out for a reporting person's
initial  filing  on this form with respect to the subject class of securities,
and  for any subsequent amendment containing information which would alter the
disclosures  provided  in  a  prior  cover  page.

The  information  required  in  the  remainder of this cover page shall not be
deemed  to be "filed" for the purpose of Section 18 of the Securities Exchange
Act of 1934 ("Act") or otherwise subject to the liabilities of that section of
the  Act but shall be subject to all other provisions of the Act (however, see
the  Notes).

     This Statement relates to the Common Shares, (the "Shares") of  The Diana
Corporation  ("DNA") a Delaware corporation.  DNA's principal executive office
is  located  at  8200  W.  Brown  Deer Road, Suite 200, Milwaukee, WI   53223.

     In  reliance  on  Rule  13d-1(b)(1)(ii)(E),  the  reporting  person  will
hereafter be filing a short form statement on Schedule 13G annually in lieu of
Schedule  13D  or  any amendments thereto covering the securities that are the
subject  of  this  report


ITEM  1.    SECURITY  AND  ISSUER

     No  Change

ITEM  2.          IDENTITY  AND  BACKGROUND

          No  Change

ITEM  3.    SOURCE  AND  AMOUNT  OF  FUNDS  OR  OTHER  CONSIDERATION

     No  Change

ITEM  4.    PURPOSE  OF  TRANSACTION

     No  Change

ITEM  5.    INTEREST  IN  SECURITIES  OF  THE  ISSUER

     No  Change

ITEM  6.    CONTRACTS,  ARRANGEMENTS,  UNDERSTANDINGS  OR  RELATIONSHIPS WITH
RESPECT  TO  SECURITIES  OF  THE          ISSUER

          No  Change

ITEM  7.    MATERIAL  TO  BE  FILED  AS  EXHIBITS

     No  Change



THIS TABLE HAS BEEN SQUEEZED AS FAR AS IT CAN GO WITHOUT WORDS/## BREAKING UP.
 IF  ATTY  WANTS  MORE  INFO  OR "MORE SPACE", HE'LL HAVE TO BUMP FONT TO SZ.8
AND/OR  MAKE  MARGINS  THINNER.          After a reasonable inquiry and to the
best  of my knowledge and belief, the undersigned certify that the information
set  forth  in  this  statement  is  true,  complete  and  correct.

January  8,  1997
Dawson-Samberg  Capital  Management,  Inc.


By:  /s/    Arthur  J.  Samberg
   Arthur  J.  Samberg,  President

Pequot  General  Partners


By:  /s/    Arthur  J.  Samberg
   Arthur  J.  Samberg,  General  Partner


DS  International  Partners,  L.P.


By:  /s/  Arthur  J.  Samberg
   Arthur  J.  Samberg,  General  Partner


Pequot  Endowment  Partners,  L.P.


By:  /s/    Arthur  J.  Samberg
   Arthur  J.  Samberg,  General  Partner


Porridge  Partners  II


By:  /s/    Arthur  J.  Samberg
   Arthur  J.  Samberg,  General  Partner


Arthur  J.  Samberg


By:  /s/    Arthur  J.  Samberg
   Arthur  J.  Samberg,  Individually














     EXHIBIT  A

      AGREEMENT


     The  undersigned agree that this Amendment Number 2 to Schedule 13D dated
January 8, 1997 relating to the Shares of The Diana Corporation shall be filed
on  behalf  of  the  undersigned.


Dawson-Samberg  Capital  Management,  Inc.


By:  /s/  Arthur  J.  Samberg
   Arthur  J.  Samberg,  President

Pequot  General  Partners


By:  /s/    Arthur  J.  Samberg
   Arthur  J.  Samberg,  General  Partner


DS  International  Partners,  L.P.


By:  /s    Arthur  J.  Samberg
   Arthur  J.  Samberg,  General  Partner


Pequot  Endowment  Partners,  L.P.


By:  /s/    Arthur  J.  Samberg
   Arthur  J.  Samberg,  General  Partner

Porridge  Partners  II


By:  /s/    Arthur  J.  Samberg
   Arthur  J.  Samberg,  General  Partner

Arthur  J.  Samberg


By:  /s/    Arthur  J.  Samberg
   Arthur  J.  Samberg,  Individually


     THIS  TABLE  HAS  BEEN  SQUEEZED  AS  FAR  AS  IT CAN GO WITHOUT WORDS/##
BREAKING UP.  IF ATTY WANTS MORE INFO OR "MORE SPACE", HE'LL HAVE TO BUMP FONT
TO  SZ.8  AND/OR  MAKE  MARGINS  THINNER.