Recording to Smartmedia sounds quite nice; but lets not forget that using MP3 as a guideline in terms of quality and data rate stereo sound recording costs about 1 Megabyte per minute (very approximately!) although this is reducing as algorithms improve (isn't WMA format about twice as compact?)

So 128MB is two hours - can't be bad!

I've got a quite small Sharp MT 161 minidisc recorder, however I could not recommend this as the tiny screws that keep the outside metal bits attached to the body keep coming loose. I would also think it is basically too portable to cope with hard usage. Most older Sharp "MT" series recorders use a similar case (square, chunky); I think they stopped making this style over a year ago.

On the minidisc front the following address is very useful:
http://www.minidisc.org/