I don't exactly have a solution, but I have a couple thoughts--

First, that the quality of your recordings is going to depend more on the turntable (actually the stylus/cartridge) and the AD converter than on the recorder.

Second, recording quality aside, you're going to need some editing capabilities to get the digital files into the form that you want.

A lot of people seem to use Audacity to record--it has a feature that finds the gaps in a single digital file and breaks it into single tracks. iPod seems like a good choice, in fact, the Numark TTi Turntable records directly to an iPod--

I haven't embarked on this journey yet, but I have about 10,000 reasons for doing it, all in boxes in the basement. Apart from figuring out which hardware/software configuration yields the best results, there is the problem that vinyl only plays in real time, meaning that, tightly cued, I've got about 200 days of playing to finish the task.

Then their is the fact next year, I'll probably be able to get a truer rendering my vinyl recordings than this year(and the year after that, and the year after that...) so I need to keep the records, and I'll need to digitize them all over again later.