Use CDex. It's uses LAME - supposed to be nearly as good a codec as Fraunhofer, and it's all freeware. I love freeware.
Some features as per their website:
- Direct recording of multiple tracks
- Read track information from cdplayer.ini file
- Read track information from local/remote CDDB
- Jitter correction
- Indicates track progress and jitter control
- Normalization of audio signal
- Supports multiple drives
- Conversion of external WAV files
- Support for M3U and PLS play list files
- Best of all, it's free
CDex Home Page