I suggest you get an MD player. I have the Sony 900 (red) and I like it a lot. As for making mixes, yes I have to agree that real-time recording sucks in this sense. But since MD media is so cheap, I'd imagine you'd keep your mixes intact for a reasonable amount of time. With Mp3 players you gotta keep getting rid of whatever's on the player if you want a different list >> memory is expensive. Sound quality is not that good.
Here's what I do to solve my problems with the real-time recording handicap,
I make separate lists that that are <= 74 X 2 minutes long*, and use my optical connection and just let it record when I go to sleep. When I wake up, I have it on the MD and erase any unnecessary track marks. Yes it's somewhat an inconvenience, no pain no gain.
* the new ones have MDLP which is 2X and 4X compression, allowing you to hold more music on the same media (yes even old old MDs that were made before this higher compression scheme was invented work too!)
Try getting 148 minutes of high quality music on an mp3 player. Ok let's say you get about 120 minutes on it and you decide you wanted to change mixes and you do that say 10 times, now isn't that a pain in the ass? Now consider the fact that you want want to keep those mixes (you're going to have to save those playlists and manage them), that's more of a hassel don't you think?
Just my opinion. Good luck.
Disclaimer: I'm not hating on you mp3 guys, mp3 kicks ass. In fact, I use (HQ versions) to record to my MD player.