Digital Recorders

I use MIDI-sequenced sound modules for backing, so I am considering the option of sync'ing my sequencer with my AW4416 and running the modules in time with the recorded material. Or is it more sensible for me to record the module outputs to the hard drive?

Recently, I bought a digital recorder and have been re-recording some of my old compositions from scratch in digital but, to my great disappointment, I am finding that my mixes are sounding harsh and cluttered. I thought digital recording would give me more clarity in the mix because of its higher fidelity. Where am I going wrong and what can I do about it?