It is best to RIP your CD collection directly in your PC's CD drive. So cables not needed...just choose the type and quality setting before you start ripping.
This can be automated if you have lots of CDs to rip - just keep popping the cds in and the software will do the rest automatically, even searching the internet for artwork, artist, album and track names. A big time saver.

An application such as iTunes (Windows & Mac) allows you to set the quality and type of file you create from your CD, and stores them in a library with Album artwork and links to biographies etc.
Basic file types are:

AIF (CD original file type - big but perfect quality)
Apple Lossless (CD perfect quality but smaller files than AIF)
AAC (has variable quality settings - compressed file size but can sound as good as a CD)
MP3 (has variable quality settings - compressed file size but larger than AAC for same sound quality)

There are many websites with details of all of the above (wiki is a good starting point...)

If you connect your PC to your Hi-Fi amp for playback, then use the very best quality cable that you can afford - just like any other hi-fi or TV connection.

Alternatively, Airport Express can wirelessly transmit audio from your PC's wireless card to a hifi anywhere in your home, for about £60. Windows or Mac. (And you can use a digital optical-link for the final stage between the Airport and your hi-fi.)

INTERNET RADIO

I record this from my computer's audio using an application called AudioHijack - but there are other apps. available that do the same. Save in iTunes & archive to CD.