I'm very sorry to hear that. Is there a chance to correct things somehow? Let us know how your coming along.
I just picked up a cool item from iriver. It's the T30 1gb flash MP3 player/recorder and it rocks. It's got USB 2.0, headphones and [u]line in for recording from any source, no PC needed[/u]. If using a microphone, evidently you need one that is self powered or something that brings the signal up to line level. However it also records surprisingly well with the internal mic.
I saw this item online for ~$130, so I'll be seeing Best Buy for a price match or else a return, mine was $169.99. It is so small it's nuts. I'm recording a CD to it right now through the line in jack. Works great!
I wish it showed you what settings are which sampling rates, instead they just say, hi, med, low for the recording quality. But, when you play them back, and you go to adjust the volume, the LED display shows that it's an MP3 320k 44khz! Not sure what those numbers exactly mean.
MINI PREAMP
I've seen small mini mic stereo preamps w/two mini mics go for like $69-99 on ebay. That's 2-mics and one 9volt preamp that outputs to line level, w/two different boost levels. Still checking out options.