Maryrrf - You have to play with the settings in order to find the right threshold. All audio restoration systems sacrifice something in quality in order to perform their tasks, the trick is finding the right middle ground. I will say that I am less than impressed with Cool Edit's tolerances - it is not as flexible as other systems.

Syntrillium, the makers of Cool Edit, recently sold their product to Adobe.   Cool Edit is no longer being offered and a new Adobe audio product has replaced it. I have not tried it yet, but I would be curious if anyone has used it.

There are a few portable MD decks that offer digital OUTPUT, but most of these are high end models that are intended for professional use. They are being marketed to radio reporters.