Sorry for the necro-post! A few years ago, I picked up a this same player from a discount store without knowing what it was. Best $50 I've spent in a long time.
I've recently moved it from my home theater room to my office and started using it as a CD player. Using the headphone output (which has a nice volume control) it is clear that Nakamichi put a lot of thought into its design for music playback. Through my Grados, the presentation is eminently musical and warm with a rich and detailed soundstage. The only criticism I can give it is a slight harshness in the mid-high frequencies, but that could even be a limitation of my Grados. I'd love to hear it with better headphones. Seriously, the music is so pleasing and detailed that I'm listening to my classical collection all over again.
Brahms' Ein Deutsches Requiem is liquid with individual voices standing out in the recording, both chorus and orchestra. Minute details in tuning and instrument color are also discernible as are mistakes in the recording process and page turns. Switching gears to the Smashing Pumpkins' Siamese Dream, the Grados keep their punchy head-banging appeal with ultra-tight and powerful bass. Each song is further deconstructable to its smaller parts, letting one enter the recording studio and dive straight into the music. No matter what you throw at it, you get a superbly defined, musical and ultimately pleasing performance.
Unfortunately for me, this player has kept me glued to my chair more than a few times and just begs to be listened to. It's also a well-built machine with a nice jog control and quality CD tray. It was an audiophile player when it was released so I can't say I'm surprised by its superb performance, but I am pleased that the headphone stage was also looked after by Nakamichi engineers.
The Nak is definitely a gem, so keep it on your list when looking for used gear.