Best way to save cd collection?

Need advice on how to save my cd collection to a lossless format and play on my stereo system. Can someone give me a very, very simple explanation of what equipment and/or software I need? Keep in mind that I'm computer challenged. I have an iPod and would consider buying a DAC and Wadia docking station. Would also consider buying a laptop computer if necessary and "streaming" the music to my sytem. My goal is a simple, inexpensive approach that doesn't compromise the quality of the music. Have I mentioned that I'm computer challenged??
I record in Apple Lossless.
Play thru I-tunes via Airtunes controlled with a iPod Touch.
At the stereo end is an Airport Express which has both analogue and optical outputs. I run the Optical to an input on my CA840c CD player to my stereo via balanced cables.
The iPod Touch works easily over the entire house.
Others may differ and have good reasons, but I'm sticking with my iMac.\\

For PC you may be able to use WinAmp and record in FLAC but than you need to figure out the rest of the signal chain.

others will be by shortly with other approaches / signal chain
Recommend you talk to Neal @ Sound Science. No affiliation, other than satisfied customer. His music server will auto-rip your CDs in lossless FLAC (or other that your choose) format, and pick up the artwork and meta-data. You just slip a Cd in the drive and close the door. its automatic from there until it ejects and you slap another disk in. If you have 5-600 CDs that is a big plus. It has the streaming software also built in.

I am using one to stream wirelessly to a Logitech Transporter, which has a line output that can feed a receiver, pre-amp or integrated amp. My Transporter has been modified by Modwright and the sound is oustanding. Most importantly, this set-up is pretty close to plug-n-play and Neil has v good instructions and excellent support. I have called him or emailed him quite a few times before and after the sale and he usually picks up the phone or answer my email within a few minutes; a few hours at the outside. Highly recommended.

I just picked up a mac mini, airport express and ipod touch to act as remote. I would say there is nothing more plug and play. Once the settings are right in itunes, I put the disc in and walk away, it finds track names, artwork, and rips songs. When it is done, it spits the disc out. Couldn't be more straightforward. Plus, I get apple's help on setting up the network if I have trouble.

Please give me a ball park cost estimate for this setup. Will the remote adjust the volume too? Any negatives? I'm assuming this will rip in lossless format?

I am interested in the answers to your thread. I am looking at the same thing. Issues are
1) Large collection
2) Lossless storage
3) accurate ripping
4) Back up (I am thinking RAID 1 - which means everything is duplicated on two drives to ensure no loss of music collection + one additional drive to hot swap - i.e triple backup)
5) Jitter (got to find a way that minimizes this)
6) Bit transparency (make sure no pesky software digital volume control, EQ, sample rate converter or other software bug undermines the sound)
6) Wireless (everything should be accessible from a remote or laptop - no wires to connect - storage media should be in a utility room where I don't hear the hard drive fan)

So far: I'm thinking of storing the music collection in Apple Lossless on a LaCie 2TB 2Big NAS connected to a Wireless Router. A macbook would wireless access the storage and Itunes would wireless serve the music to an Apple Express connected by TOSLINK to a asynchronous sample rate converting DAC.

I do not want to hijack your thread but I'll be reading all the comments with interest.

Appears we have the same goals. I don't need capability for multiple rooms. I just want to rip & play my library of cds thru my high end system via a remote at my listening chair. After searching online, there seems to be no concensus on how to best achieve this (on a tight budget). I'm just praying that any advice will be very simply stated so I can understand it. Case in point, I have no idea what a LaCie 2TB... is and how to utilize it.

I have attached a link to a forum site where people post descriptions of there Mac Mini servers. It can be a great help while researching what fits your needs.

Mac Mini are easy to set up and use but it can get pricy. Window's based computer/servers are getting just as easy these days and will not cost as much but can required a little more computer know how.

FYI: a LaCie 2TB... is an external hard drive used with some music servers for music storage. Most music server do not have large internal hard drives.

I second the PC based storage idea. I am also interested in the Perfect Wave Transport and Perfect Wave DAC from PS Audio. They use outboard hard drives to store music. The PWT stores the CD in RAM so there is no jitter and uses I2s over HDMI to transmit the raw digital data to the DAC. The system will also play downloaded high quality DVD music discs. They are backordered at this time but they still have a trade in deal at up to $1000 off for a limited time.
There are as many ways to do this as there are ways to cook an egg.

Sonos. Squeezebox.
I've had an opportunity to talk with Walter at Underwood HiFi. Super nice gentleman who took the time to explain things in terms I could understand. I'll probably take his advice and get the modified ZP-90 and modified PS Audio DAC.
The most stable form of storage would be RAID 5.
The data is spread to 5 or more HDs and checksums also. So, in the event a drive dies you can replace it and the new drive will be reconstructed from the other 4, just takes time.
The only way to loose the works is if the whole thing gets zorched.
I would also be interested in the experience of those who have made the obviously wise transition to non-cd digital storage. A quick review of the forums at computer audiophile reveals a potpourri of choices to be made; not only for storage of existing cd's but downloads. There are questions as to whether to use media monkey, itunes, foobar 2000 etc and what is truly lossless. Similarly there is the discussion on Lynx cards, firewire / async USB, and of course the biggy - Mac vs PC. Would be interested in hearing what people who are using such systems have discovered and what you are using. Particularly important is that the transfers - downloads etc are truly lossless no quality is sacrificed.