I've never worked with one, so I was wondering how these actually work...
For example; if i hook up my sp404 to it, will it record the actual audio or just the midi? or can it do both... If it records audio there can't be any quantize on the beats right? I always hear people talk about using multitrack recorders with the sp's so I was just curious about the process...

I record audio into a digital track recorder. you can record 1 track at a time into them and edit each track individually.

so what's the process?
Do you sequence it on the multitrack? or do you sequence some drums on the sp404 and then record it to the multitracker afterwards?

I like to finish the whole beat inside the 404 before going to the digital mtr. then record 1 track at a time into the digital mtr by muting all other tracks

is there a punch in function or something like that on 4 -tracks and multi-tracks?

on my digital multitrack there is