As someone kindly pointed out, i was 'confused'...i.e. plain ol' wrong. 
My headphone out jack is also the remote cord access jack, but not an
optical out.  The line in to the 702 IS also the optical input for
direct digital recording.  The 702 instructions do specify that there
are two types of digital terminations available, AD-M1DC, and AD-M2DC,
the first from square digital (optical) out to round optical input (to
702), and the second with round optical to round optical, to go from
optical in on the Sharp, to "the optical output jack (round shaped jack)
on an MD player etc."  I somehow turned this around and thought there
was an additional optical output on the Sharp.

The instructions also recommend that the Sharp be set at max output
level when used as a program source through line (headphone) out.  That
is a reasonable action with any variable output level source if you want
to achieve maximum SN ratio at the output side (as long as you don't
overdrive the next input stage).

ted gosfield


Mark Derricutt wrote:
> 
> On Sun, 1 Aug 1999, Edward Gosfield III wrote:
> 
> > the 702 has 'just' a headphone out too.  Mine works just fine as a line
> > out, and can also provide digital optical output (per instruction manual
> > -- optional optical output cable available, comes with input cable).
> 
> It does digital out?  wow.... i wonder if the 722 does that....  <reaches
> for manual>
> 
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