Here are a few other options to get best quality transfers.
At the advise of acousticsounds.com, I purchased a Mercury Pro optical drive from OWC and transfer Redbook CDs directly to the HAP-Z1ES in .wav format.
Acousticsounds.com also recommended JRivers software which allows you to up-convert Redbook CD to DSD which can then be transferred to the HAP-Z1Es. JRivers software has many other useful features as well.
Transferring any material in MP3 kind of defeats the advantage of having the HAP-Z1ES. Stay with a lossless format such as AIFF, FLAC, DSD etc.