I'm pretty sure that most of the portable recorders offer optical ins, even 
my entry level Sharp 702 has an optical (mini-TOSlink) input. 

  As for MD to MD, I have to make do with analogue recordings because my 
portable doesn't have optical out and my entry level Sony JE320 doesn't have 
optical out. I just do a direct (more or less) RCA cable connection between 
the two units and let 'er rip. I used to have just the 320 and a E40? 
portable, which despite it's dimunitive size it did a pretty good job, when 
hooked into the stereo system. 

~Zach
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