You need a ripper to get the audio data and a Encoder/Codec to generate the audio files. I use Audiograbber and LAME codec (for MP3) or OGG Vorbis codec (.OGG). Check the links below and don't forget to visit http://www.r3mix.net/

Hope it helps, Moak

[1] Audiograbber http://www.audiograbber.com-us.net/
[2] LAME http://home.pi.be/~mk442837/
[3] OGG Vorbis http://www.vorbis.com/download_win.psp

PS: If you ask me, please make files with more than 128KBS, hehe...