Phew! A long list of what you
can't do and things that go wrong on the site you linked. As far as the CD writer goes, your best bet is to set up searches on Ebay to keep an eye out for a few of the models it does work with, and grab one when it does pop up.
Yes you should be able to connect the 788 to your PC, play back on the 788 and record into some recording software on the PC then burn a CD from that on the PC. An extra step and the transfer will be realtime, but it would work.
While we're on this topic what are your opinions on PC based recording vs DAW recording. pros and cons? I'm in 2 minds whether to invest in cubase/pro tools etc. or in a decent "all in one" DAW.
Well, you're currently discovering the problem with hardware devices - they have a limited lifespan and when they are out of production (which happens quickly), spares and repairs fast become a problem. PC you can upgrade the software, hardware, even change computers completely and things will still work.