I think I figured out what was going on so I thought I'd come back &
report it to HF.
What is happening is the optical output is switching off when it's not
playing a sound on the Macbook Pro (MBP). When I select optical
for the input source of the TDK CD Recorder, it reports back "D-Unlock",
which is what you get when nothing is input into the TDK from the
selected source.
Now when I play a sound (youtube or whatever), the TDK picks
it up & starts playing. And if I go back & select the optical input
again it shows 48Khz, so it's picking something up. But for whatever
reason, when I ready a recording track, it never records because I think the
optical output cuts off before the sound plays & this causes the
TDK optical input to register back as "D-Unlock"...basically that the
TDK has once again lost the signal.
Now what I've noticed is that the Xitel USB (to optical/coax/rca)
device is _always_ on. Once I plug it into the USB, you can see
a red light coming from it when nothing is playing. The TDK registers
the Xitel at 48Khz (it has no way to change that frequency btw)
& the TDK will record without fail.
I've also been noticing a stutter to the sound with just the optical
output on the MBP (without Xitel), so it seems to be the laptop
itself can cause the issue, as far as I can tell. If I keep the majority
of apps closed when doing a recording, I can probably minimize or
eliminate the stutter.
This would also explain why passthru optical from the MBP to
a preamp processor would not make a change as the preamp
would turn its beam off when it wasn't receiving a beam from the
MBP. So to get the TDK recorder to accept a signal, I need any
USB to optical device to have its own beam always running. If
the optical signal is energy efficient, the TDK gets hosed up.
What a pain, but at least it makes sense now.