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): October 21, 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


     Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions:

|_|  Written communications pursuant to Rule 425 under the Securities Act (17
     CFR 230.425)

|_|  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
     240.14a-12)

|_|  Pre-commencement communications pursuant to Rule 14d-2(b) under the
     Exchange Act (17 CFR 240.14d-2(b))

|_|  Pre-commencement communications pursuant to Rule 13e-4(c) under the
     Exchange Act (17 CFR 240.13e-4(c))




ITEM 7.01. Regulation FD Disclosure

On October 21, 2004, Digital Recorders, Inc. announced in a press release that
that its Mobitec AB (Mobitec) subsidiary in Herrljunga, Sweden, has been chosen
by Euromaint AB (Euromaint) of Malmo, Sweden, on behalf of Statens Jarnvagar
(Swedish State Railways) of Stockholm, to retrofit a fleet of X2000 high-speed
trains with LED display signs in an order valued at between $500,000 to $1.1
million.

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.

This order does not represent a "material definitive agreement" of the type
required to be disclosed under Item 1.01 of Form 8-K.

ITEM 9.01. Financial Statements and Exhibits

(a)  Exhibits.

     99.1  Press release dated October 21, 2004.



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: October 21, 2004                 By: /s/ DAVID L. TURNEY
                                           -------------------------------------
                                           David L. Turney
                                           Chairman, Chief Executive Officer and
                                           President




INDEX TO EXHIBITS

EXHIBIT
NUMBER    DESCRIPTION
- ------    -----------

 99.1     Press release dated October 21, 2004.