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): February 28, 2007

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

                             Digital Recorders, Inc.
             (Exact Name of Registrant as Specified in Its Charter)



       North Carolina                    1-13408                56-1362926
(State or Other Jurisdiction of   (Commission File Number)     (IRS Employer
       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 8.01.  Other Events

     On February 28, 2007, Digital Recorders, Inc. noted that the U.S. Senate
recently passed a continuing resolution, which was signed into law by President
Bush, to provide the nation's federal transit programs with $8.975 billion for
the current fiscal year -- the record-high level authorized by the Safe,
Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users
(SAFETEA-LU, P.L. 109-59).

     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.


ITEM 7.01.  Regulation FD Disclosure

     The Company incorporates by reference the information included in Item 8.01
of this Form 8-K.


ITEM 9.01.  Financial Statements and Exhibits

(a)  Exhibits.
     99.1   Press release dated February 28, 2007.



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: February 28, 2007          By: /s/ KATHLEEN BROWN OHER, CPA
                                 -----------------------------------------------
                                 Kathleen Brown Oher, CPA
                                 Vice President, Chief Financial Officer,
                                 Treasurer, and Secretary





INDEX TO EXHIBITS

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

   99.1         Press release dated February 28, 2007.