For mint condition cds your suggestion may work ok, but if your cd has any scratches or blemishes it is likely that your rip will have clicks and pops.

The best cd ripper is definitely ExactAudioCopy, though it can be a bit of a pain to set up for a newbie It really isn't that hard, and there's a good tutorial here: users.pandora.be/satcp/tutorials.htm
EAC takes a bit longer than other rippers, because it performs many checks to ensure a perfect rip - do it once and do it well, I say!

If EAC is a bit daunting then CDex is the only other good choice: www.cdex.n3.net
There is a good CDex guide here: home.iprimus.com.au/alexanderino/cdex

For the best mp3 quality you should go with the LAME mp3 encoder and the "-alt preset standard" setting. It may also be worth looking at other lossy formats like ogg, MPC or AAC (which iTunes does well), or for the best quality a lossless format like FLAC. The best place for information on cd ripping and encoding is definitely hydrogenaudio.org