Thot I should say something about this... I've spent a lot of time assembling my gear -- maybe I'll save somebody time with this description. Though I mostly listen to Magnatune, shoutcast streams, and Pandora, I'm not on the internet 24 hours a day -- so I do have a music collection and a music player.
I use Winamp Pro with the FLAC encoder to rip my CDs and the FLAC library plugin and transcoder plugin to convert music files to WMA (windows media) format for my music player. Tho I'd prefer OGG if I it worked on my player.
My music player is a 512MB flash player with a 1GB expansion card (Sandisk Sansa e130). I rotate music onto the player from time to time -- this method has helped me organize the cream of my music collection in WMA files for my player. There's a few whole CDs in there -- but mostly I make mixes -- retagging with MP3tag since the Sansa doesn't support playlists.
Finally, I sometimes use audacity to edit a music file. That usually means transcoding to MP3 format.