Say I submit "Tiger Pictures" and it goes top 10 on Digg. How would my "Tiger Pictures" website do for that phrase, "Tiger Pictures".
it depends on the traffic linked to that keyword. Are people digging your story because it is funny or because they want to buy tiger pictures? your question is hard to answer in one thread.
you will get flood of traffic from digg, thats for sure. in terms of google ranking, you will need lot of diggs to make it to the front page means lot of people bookmarking your story. lot of backlinks from bookmarking will help you with google ranking but how much is hard to tell
Like others have said, it depends if people just come to your site from digg, read it and leave or if they come to your site and link to it from their own site (ex, a blog). Pure traffic to your site is not going to have a huge impact on your Google ranking.