CD ripping for the lower end.

n80,

You caught me with $39 as I was writing from memory. However, I am quite sure it was more than $39 in my case and I honestly think it was somewhere close to $80. I did install it on more than one computer so maybe that is the difference. In any case, I think it was worth $80 that, now I know, I might have not even paid.

At the same time, I would like to emphasize the last paragraph in sbank's post above. Metadata gets messy. Album artist is really important one. Put some name you know album as. Let's say, Willie Nelson. As album artist, make sure you put Willie Nelson and check it is on every song. That way, when you look for Willie Nelson, it will show up in Willie Nelson folder regardless of the fact that each song on that album is sang by Willie Nelson and someone else. I am not explaining it that clearly, but listen to sbank and do yourself a huge favor by fixing metadata while ripping. In case you do listen to classical, too, brace for impact. Metadata scavenged from the Internet is a total jungle. Eventually, I rewrote each and every of them in some way that would be later easier to figure out what is what. For example, just getting them from the Internet put two Mozart Requiems (different performances) together as one album, etc. You may not notice it initially, but at the moment you do you will not be happy.

Get an Airport Express to sit with your stereo system.  Or you can have a really, really long optical cable.  Airport Express has a jack on the back that takes a mini-cable, but also takes a slim size optical out in the same slot...not everyone knows that.  Using the mini-jack RCA out, people have said the DAC on the Airport Express isn't too bad...but you can use your own or a new one.  BTW, FLAC is the same as the .WAV at the point you're listening to the files...its lossless.  WAV is big and not losslessly compressed.  You will not notice any lag in decompress time.  Playing what stored on your computer is better because CD's get dust and scratches so you're not listening to the same copy each time...just like vinyl...but there is error correction etc.  Once you've ripped your CD, put it in a closet in a binder.  CD's die in less than 50 years.  Homemade CD's die sooner.

Depending on what apps you use (even itunes), you can DJ your songs from your iphone, ipad or whatever directly to the Airport Express into your stereo.  Ditch the CD player for your stereo unless it has a $2000 DAC with selectable filters built-into it.

Happy listening!

"Once you've ripped your CD, put it in a closet in a binder. CD's die in less than 50 years."

Huh, some of mine are closer to that than I thought. Who would have expected that, I still feel it is a new technology.

On a more practical note, do not forget that hard drives of all kinds die, too. It seems to me much sooner than 50 years. Make multiple back-ups.

Here is an update:

Got the Schiit Modi 2 Uber today. 
It works just fine with the old iMac.
Ripped a CD (Gaucho by Steely Dan) into iTunes-ALAC
Played it back through the Schiit.
It sounds very good but A/B testing shows it not to be as good as CD. Close but not as rich or full. Generally would not spend quality listening time with this level of SQ. Fine for background listening.

I have downloaded XLD and am ripping Gaucho into my MacBook...although I found that XLD will also work on the old iMac. We'll see how that sounds via iTunes as well.

Then I'll get BitPerfect on the MacBook and see how the XLD ripped CD sounds. If I'm happy, I'll stop there. 

If not, will get JRiver or Amarra or Audirvana and try that.

XLD is a bit clunky and very slow. Might bite for dB-Poweramp if I decide to do a lot of CDs.

I got BitPerfect on the MacBook. It sounds better than iTunes on the iMac.

But there is still a difference between the CD and BitPerfect.

I downloaded the free trial of Audirvana and did not think it significantly better than BitPerfect.

I did blinded A/B testing with Audirvana vs the CD. I could easily and consistently identify the CD. I felt like the CD was brighter and crisper.

I did the same A/B testing with my wife as the listener. She could also easily tell there was a difference. She initially felt like the CD was a little too tinny and like Audirvana better. But after several more tests she said that even though they were different she had a hard time saying if one was better than the other.

So I'm thinking my cheap little system is good enough. Since I can't tell much difference between Audirvana and BitPerfect I'll stick with the cheaper BitPerfect. At this point I've only got about $135 in this venture.

If I absolutely knew were to effect a significant improvement I might go there but right now I'm uncertain. Maybe a better USB cable. But, not sure it is worth going to the Schiit Modi Multibit at this point.