After you buy the album, you'll have to "rip" the CD to your computer (use a program like iTunes, WMP, RealPlayer, WinAmp, etc.). "Ripping" is basically copying the files over to your computer. You can't just drag and drop, as the CD that you buy is already finalized.
When you "rip" the CD, it will have you choose the option in which you want the songs to ripped (bitrate, format, sample rate, etc).
Format: Most people choose MP3 (as it is the most universally accepted format), but you can also choose other options (WMA, AAC, RP, WAV, etc)
Bitrate: First, you will chose between constant (CBR) and variable (VBR). CBR allots equal data to each part of the songs,allowing for a more consistant volume while listening. VBR allots more data to the louder parts of the music and less to the softer parts. VBR usually takes up less room and let's you hear the music more as it was recorded, but can be annoying because the volume level can vary so much in a single song.
If you choose a CBR, you will usually have the option to pick between 64 kbps - 320 kbps (kilobytes per second). The higher the kbps, the better the sound quality, but the more space the song takes up. If you choose a lower bitrate, you will never be able to convert it to a higher one.
Sample Rate: I would just go with the default option, it us usually something around 44.100 kHz.
My advice is to rip it as an MP3 @ 320 kbps at a CBR.
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