here are my settings (not sure if they are the best possible):
On iTunes, bottom right hand corner, Click on Import Preferences or Import Settings
select Wav on the drop down menu
you should see 44,100 Khz, 16 bit, stereo in the Details window
Select Use error correction
Those are serviceable settings, however, for the best possible ripping, MAX (free version) is an excellent software that behaves like CD Paranoia, it reads the disc as many times as necessary to get a 100% error-free rip.
Insert a CD and open Max
Itunes will budge in and ask if you want to import the Cd, click on NO, close iTunes
With Max still open, near the Apple sign on top of the screen, select Max Preferences
Click on the General tab
Check all boxes except Only when disc is seen for the first time
Click on the Formats tab
Select WAVE (linear PCM)
Click on the Ouptut tab
Select the Itunes Music folder (look it up with Apple Finder) as output folder.
LeaveTemporary files as Default
Check Overwrite existing files
Check "Save Encoder settings in comment"
Check Delete source files after encoding
Click on the Ripper tab
Select Cd Paranoia
Check Generate a Cue Sheet
fill in the boxes:
3 matches per sector
Check all boxes
At the bottom, select skip after 20 tries (god enough for government work)
Or select Never skip if you want perfect ripping (it may get stuck on badly scratched CDs)
Close Max Preferences
From now on, when you insert a CD, a Max pop-up window will show the CD's content.
Click on select all and the Encode tab.
Max will start the ripping progress (slow).
When Max is done it will transfer the files to the regular Itunes music folder within the iTunes Libray.
Burn the CD with Itunes, as usual.
I went into details because Max does not come with a manual, I had to find my way through trial and error.
If someone more experienced spots a mistake on the above procedures/settings, please let us know.