Here we go
1. Yes, there are many many many many programs that you can use to rip your music. Since you have used the correct nomenclature I assume you will be familier with the names. iTunes is growing very popular, even with those that use windows primarily. The caveat with iTunes is that the songs are ripped to .ACC format by default. This is a great compression scheme with is better than .OCC and MP3 and WMA and blah blah blah. The problem is that the ONLY program that can play .ACC is iTunes. Be prepared to use iTunes for awhile if you choose that option (although it appears that apple is being pressured into making changes to that....sadly) Although some may groan, Windows Media Player does a fine job of ripping music as well. I would be sure to mess with the settings to assure that the compresion is as lossless as possible. Others include Winamp, Jukebox (I suspect spyware of Jukebox though) and Lame (an open source product....if you want to stick it to "the man"). Lame is very fast and good, but not directly supported. As far as I am concerned (and I am a microsoft guy), iTunes is the best product out there. Especially for searching out your songs once compiled. Also....these are all free programs to use. DO NOT PAY MONEY FOR A PROGRAM THAT DOES THIS STUFF!
2. As far as hardware goes, we live in a very happy time. Hard Drives are becoming very inexpensive nowadays, and that is the best way to do it if I were you (I am me....and that is how I have it done it). I am 26, have 2 children, a mortgage....whatever, and I still have been able to afford 500 Gigabytes of storage for my computer without much difficulty. My favorite site for deals is
Http://www.spoofee.com . Sometimes is has AMAZING deals on things....just be a little patient. For about 350 dollars and some research (or be a dork like me) you could have a terabyte of information set up on a RAID 1 format.....sweet........ Now, regarding your need for perfect sound, you might consider getting alot of storage and then using a lossless format for your music (.WAV). Unfortunatly, .ACC and the others are about one 10th the size of .WAV formated sound. It is up to you.
Now, there is no point in having lossless formats and lots of storage if you don't get the signal to your equipment in a good fashion. Buy a good sound card. They are about 100 bucks for one that will fit your needs. Don't go over the top unless are plan on openeing up a recording studio in your house. Spoofee is a great place for deals on that also.
Finally, do some research. I doubt you have bought any of your other equipment without checking it out first. DO the same for the programs as well as hardware. When I research this stuff I use
http://www.techreport.com They are the audioholics.com of computer geekery.
One last thing. Check spoofee and get some more optical drives (cd/dvd players/burners) for your computer. You will want them when you start with the ripping of the tunage