If you have Audio CD and want to make a digital file like mp3 or wav, you can use CDex freeware to do it.
CDex can extract the data directly (digital) from an Audio CD, which is generally called a CD Ripper or a CDDA utility. The resulting autio file can be a plain WAV file (useful for making compilation audio CDs) or the ripped audio data can be compressed using an audio encoder. Many encoders are supported, to name a few:
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Lame MP3 encoder
Internal MP2 encoder
APE lossles audio format
Ogg Verbis encoder
The Windows MP3 encoder (Fraunhofer MP3 encoder)
NTT VQF encoder
FAAC encoder
Windows WMA8 encoder
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Features
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Direct recording of multiple tracks
Read / store album information from/to the cdplayer.ini file
Read / store album information from/to a local and/or remote CD Database (CDDB)
Support CD-Text (if your CD-drive supports it)
Advanced jitter correction (based on the cd-paranoia ripping library)
Indicates track progress and jitter control
Normalization of audio signal
Supports many CD-Drive from many manufacters
Conversion of external WAV files
Support for M3U and PLS play list files
Best of all, it's free (GPL license, source code available)