hi guys i wish to purchase a toshiba hd-e1 but does the machine have a optical output also is the machine any good

Yes it has optical output and seems a good UK first gen HD-DVD machine and DVD player (no region hack yet). Prices have also been tumbling so a good time to buy the lowest spec HD-DVD standalone player on the UK market.

The AV Forums have a dedicated HD section with reviews and opinions on the E1 from owners.