Barbara,

It sounds like you found a perfectly acceptable solution that meets your needs. Some audiophiles would find issue, but as far as I'm concerned it is your ears that matter.

The way you set it up, you are getting an analog signal out of your headphone jack. You've added some noise into the signal, but again it is your ears that matter.   Most people would not notice a difference.

I record interviews for my radio show on MiniDisc and transfer in a similar fashion.   In addition to my portable, I have a Sony deck that is in a rack next to my computer. I've split the audio out from the deck and connected to my sound card. I'm able to get a very clean sound, for an interview, and edit with Cool Edit 2000.

The reason MD manufacturers do not have a digital line out from portable decks is two fold.   The electronics would add to the price as well as the physical size of the deck. 99% of consumers don't need that.    The second reason is digital copyright.   Having a digital out would enable potential "clones" of pre-recorded music and the record labels are trying to stop that.

There is one portable that I believe Sony sells as a "reporter" deck. This has a digital audio out, but I'm not very familiar with the unit.

Bottom line, if it works for you (as it does for me for interviews), then congratulations! I think Minidiscs are great devices and they should make audio cassette players into dinosaurs.   The sounds is a huge improvement.

Ron