UNITED STATES

                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                    FORM 8-K

                                 CURRENT REPORT

     PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934

         Date of Report (Date of Earliest Event Reported): MAY 20, 2004

                                -----------------


                             DIGITAL RECORDERS, INC.
             ------------------------------------------------------
             (Exact Name of Registrant as Specified in Its Charter)




       NORTH CAROLINA                 1-13408                 56-1362926
(State or Other Jurisdiction   (Commission File Number)      (IRS Employer
     of Incorporation)                                     Identification No.)


                5949 SHERRY LANE, SUITE 1050, DALLAS, TEXAS 75225
               (Address of Principal Executive Offices) (Zip Code)


  Registrant's Telephone Number, Including Area Code             (214) 378-8992





ITEM 9.  REGULATION FD DISCLOSURE

On May 20, 2004,  Digital Recorders,  Inc. (the "Company")  announced in a press
release that David L. Turney,  the Company's  Chairman,  Chief Executive Officer
and President,  was  interviewed by CEOcast.com on Wednesday,  May 19, 2004. Mr.
Turney's interview included  commentary  regarding the Company's served markets,
its growth  opportunities  through  geographic  expansion  by  acquisition,  its
products and  services,  and the transit  industry in general.  Available on the
Internet via www.ceocast.com, the interview may be accessed by free registration
through close of business Wednesday, May 26, 2004. A copy of the Company's press
release  is  attached  hereto  as  Exhibit  99.1 and is  incorporated  herein by
reference.  This Form 8-K and the  attached  exhibit are  furnished  to, but not
filed with, the Securities and Exchange Commission.






SIGNATURE(S)

         Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.



                                  DIGITAL RECORDERS, INC.



Date: May 20, 2004                By:    /s/ DAVID L. TURNEY
                                         ---------------------------------
                                         David L. Turney
                                         Chairman, Chief Executive
                                         Officer and President