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You might have better luck getting good suggestions in the computer forum (Tilted Computers). PM a mod, he'll move your thread.
As for suggestions, I find that Easy CD Da Extractor is very good for ripping CDs and encoding them in various formats.
MP3's are often what's most used because they're read by most(virtually all) portable music players.
If you're an audio lover, and want to know what bitrate to encode in, my suggestion is to take a track that has very well-defined audio (most stuff by Pink Floyd, etc is good in my book) encode it several times at different bitrates.
Start at 124 Kbit/s. Work your way up from there. I usually encode at 168 Kbit/s or 192. Past that is, for 99% of people, just a waste of bits, as you most likely will not be able to hear a difference.
If you're using Mac, I have no idea. A lot of people use iTunes, which is free. Tell us a bit more about your machine.
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