Apologies... After a fruitless search for any forum option to upload pictures, I then battled with ImageShack, so when finally completing the post, my patience was gone and did not give any thought to textual comment.
System components:
a) Linn LP12 - with Valhalla PS, Cirkus bearing upgrade, Ittok LVII plus Ortofon Rondo Red MC cartridge
b) Theta Data Basic II transport connected via AES/EBU XLR-terminated Transparent Premium i/c to Theta DSPro GenVa DAC
c) Yamaha CDR-HD1300 (connected via Tape Loop and to Theta GenVa via S/PDIF 75ohm link)
d) Rotel RT-03 for wife to listen to Classic FM
e) Classe' CP-500 preamp with inbuilt Classe' on-board phono stage
f) Jeff Rowland Model 201 monoblocks
g) Tannoy Definition-Series D700s
NOT Plinius - Classe' CP-500 pre-amp
HDDThe Yamaha CDR-HD1300 was originally shipped with a 40GB Seagate Barracuda SATA drive and upgrading it to the then maximum supported capacity (~135GB) was a simple matter - open the tray, remove screws, remove 40GB HDD, replace with 120GB HDD, replace screws, close tray, run format utility. 120GB equates to ~180 hours of uncompressed audio storage. (There is NO facility for MP3 conversion).
The on-board DAC/ADC combo are not bad - a wee bit bright (hence the digital link to the GenVa). CD copying is easy - Rip to HDD (at 10x) and Burn to CD-R (at 4x). Analogue sources a bit more PT - level adjustment needed, track separation (auto and/or manual) - and make no provision for software tools to remove surface noise. Approach used is to clean LPs thoroughly (using Sota RCM) before copying to HDD.
Track separation can be done automatically provided records have decent inter-track gaps (unit has parameters that can be set governing duration and dB level to automatically detect inter-track gaps. When all else fails, track editing allows manual separation (and concatenation to allow repairs for ****-ups).
HDD can also be used a virtual "jukebox" via replay direct from HDD - either via Analogue Out to pre-amp or via Digital Out to external DAC (preferred option by far).
I've compared CD-Rs burned from CD source on both a laptop and on the CDR-HD1300 and there is a definitely a difference - although its difficult to either quantify or describe the differences. Suffice to say the sound quality of CD-Rs burned on the Yamaha is a lot better than those burned on my Dell laptop.
The original intention was to convert all my LPs to CD-R, but the subsequent acquisition of the Classe' CP-500 with its excellent phono stage combined with the rapid deterioration of local music stores (selection, service, etc) has made me re-think and use the HDD more as a jukebox when in either party or couch-potato mode (less jumping up and down and more remote controlability).
Which brings me to another picture - my favourite listening companion and guard for the remote controls:

Bill-the-Burmese is a regular companion when listening to music and is also another reason for jukebox approach - he gets mildly pissed-off by regular interruptions to change LP/CD.
Finally, there has been some "robust debate" around cables and everyone is welcome to their own opinions. I'm extremely happy and satisfied with my recent cable changes which culminated in the arrival of a pair of PS Audio bi-wire cables sourced via Audiogon:

Final task is going to be a clean-up of the wiring behind the system as its a mess right now after installing based on chronological sequence of arrival rather than on any logical order.
I hope that answers your question(s)...