  We present new observations of the central binary inside the Red Rectangle
nebula. The detection of zinc in the optical spectrum confirms that the
peculiar photospheric abundances are due to accretion of circumstellar gas.
Grey brightness variations with the orbital period are observed. They are
interpreted as being due to the variation of the scattering angle with orbital
phase. The small orbital separation of the system is not compatible with
previous normal evolution of the primary on the AGB. We point out the
similarity of the orbital history of this and other similar systems with those
of some close Barium stars and suggest that the nonzero eccentricity of the
orbit is the result of tidal interaction with the circumbinary disk.
