The first thing I'd advise is that you DO NOT delete the original FLAC files you've purchased. If you can't spare the hard drive space for them, then just burn the FLAC files to a data CD-R.
If you have Toast 7, it now directly supports FLAC input files for burning audio CDs. No big deal if you don't have Toast 7, because xACT is probably the best tool for OS X for decompressing FLACs to AIFF or WAV for use in other applications such as iTunes.
A word of caution: If the album you've downloaded is a live performance or otherwise contains tracks intended to blend seamlessly into one another, then don't use iTunes to burn your audio CD(s) from the AIFF or WAV files, as you will end up with brief "pops" between the tracks. Instead, use Toast, Discribe, Dragon Burn, X-CD-Roast, or any other software that allows for Disc At Once burning. Make sure that DAO burning is supported and enabled, and set the gap between tracks to 0 seconds and your CD(s) should turn out perfectly.
As far as tagging your files for use in iTunes, there are various (complicated) ways of doing this; I tend to use bash scripts to handle this, but it's really not necessary. What I would recommend for you is to leave the FLAC files open in xACT so you can view all the tag information, open iTunes and have the untagged AIFF or WAV files selected, and then simply copy and paste the tag information from xACT to iTunes. For fields such as Artist, Album, Year, etc., you can write the tags to the iTunes files at the album level, and then the track-specific fields on a track-by-track basis. Keep in mind that when you burn an audio CD, tag information isn't stored anyway, so if that's all you're after, it doesn't even matter if you retag the files--just that you keep the tracks in the correct order.