I know very little about these, and have never seen one actually working, so I can't help you.
I recently saw a stack of those BIG cartridge tapes that look like gigantic compact cassettes, and was so tempted... dead historical formats are so much fun!
This CED seems even more interesting, with picture AND sound... but NO, no, no, I will NOT add another defunct format to the piles of gear. The Laserdiscs take up enough space. Enough is enough!
Forgive the (actually said with good humour) self-disciplinary rant.
Actually, I think the format looks fascinating. I would love to see one in operation one day. A format that perhaps was doomed from the start, esp. in the face of laser-based formats, but interesting nonetheless.
I would think that, given the mechanical challenges that faced even the development of CD-4 quad, making a complete AV system work well with a needle-based analog source would be a daunting task, indeed. I'm surprised that they got to work halfway-well, at all. I'd EXPECT jitters, static, etc... just from the nature of the thing.
This format seems really obscure. Can you tell us more about it, or recommend some links or source material to learn more?