I didn't move to NYC till 1987, so I'm not sure about the record stores except....
...there are still two Disc-O-mat stores in the city. One is in Union Square and basically sells CD's and DVD's. The other is in the village and still has a basement full of vinyl. I don't know if there was one in Times Square/42 Street.
A chain known as Record Explosion closed down a few years back. I never saw a Times Square store, though they may have had one back in the day. They did have large stores and great prices.
There is still Colony Music in Times Square. They sold records years ago.
Here is there website.
Colony Record and Radio Center
Here is an article from April 2008, New York Times that might be of some help.
http://www.nytimes.com/2008/04/18/ar...1&ref=nyregion
For everybody's information, Virgin in Times Square is closing in January 2009. I think the other store in Union Square will also be shut down.



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