As far as I remember, you can see a red light coming from the optical out. You might have to put in a disc and put the MD into play mode to make the light come on.

I'm still running happily on the Edirol R-09 I mentioned upthread...
No sound card required for that!

For copying LPs, I use the Edirol because I can get it next to the record player. If I was copying tapes I might well still use the Edirol because it's so easy; the alternative is into the computer and record with Audacity or similar, as long as I have my M-Audio Audiophile 2496 still working...