How do I capture good fm stereo to cd? or digital?

Digital audio tape IMHO.

DAT, CD-R or minidisc would all be fine. As far as signal enhancements go, radio stations need to put out the hottest signal they can to maximize their listening area. As a result all talk and pop oriented stations heavily compress their audio. It makes the music very loud, but it destroys the natural dynamics. If you're going to record from one of these heavily processed stations (and most are), then MP3 recorders are more than sufficient for capturing the audio.

I run my tuner through my CD burner then to the preamp, etc.
CD burner is set to "record - external signal". Then I just press the "record" button when I hear a song I like.
Note that analog is recorded at -12dB vs. digital is -2dB or you will get distortion.
I use CDR-W's then if I don't like the song, I can erase the last track recorded. Radio isn't the best anyhow so I don't care about reduced sound quality of multiple burn-overs on CDR-W's. I burn CDR-W to CDR when I'm done anyhow.