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 Hi, Cliff! 
I've got a Sharp MD-MS702 also.  When I got it, I thought 
it had an optical out but I was mistaken.  It has only an optical in.  
Check the minidisc page http://www.minidisc.org/ and especially the 
portable recorder comparison page at http://members.xoom.com/md_data/Recorder_table1.htm 
.  Best I can tell, nobody makes a portable recorder with a digital 
out.  Of course there's lots of MD decks with optical outs. 
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