That's not the understanding I just got from reading the following from a UK BBS ...
(paste from another bbs ...)
I, perhaps with others, had been very interested in getting a Hi-MD recorder for highly portable field recording. I recently contacted Sony UK to check whether the linear PCM uncompressed format can be used through the analogue microphone input or Line in. It appears that the linear PCM mode is only available through the digital in. Therefore this new system will not be as beneficial as I had thought.
Below is the reply I received from Sony UK. I replied asking for details of the highest quality available through the mic in and if Sony beleive this to be an improvement over standard MD.
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Dear Mr Gibbings
Thank you for your recent enquiry.
With Linear PCM mode, record and playback in high
Quality sound without compressing the sound source is possible. However, this type of recording can only be made via the digital optical connection and so, will not function with the analogue Microphone input.
I hope this information is of assistance to you, although I apologise for any disappointment caused.
Finally, if you need to reply to this e-mail, please quote reference 118362044 in the subject field of your e-mail.
With Regards
John Donnelly
For and on behalf of
Sony United Kingdom Limited