Transferring analog vinyl albums (or cassettes) to your PC is not a trivial effort.
You want to convert analog music to digital. Doesn't matter if it is vinyl records or cassettes, the concept is the same. It's a simple concept that it a bit tough in implementation (if you want to get it as right as possible).
Once you record (digitize) the original analog recording, the resulting digital file will be large. You can then convert it into an MP3 or AAC file after correcting it. Most folks I know who digitize their vinyl keep the recorded and corrected files on a separate External Hard Drive, as the work involved to get them is substantial. The best audio will be the originally recorded digital copy in a lossless format. This should be kept, or archived, as it can be burned to Audio CDs or imported (and re-imported, if needed) into iTunes in whatever lossy format you require.
1st: Hook up your stereo to your PC line input jack. I prefer using an analog-to-digital converter hooked into my USB port instead. This may reduce or eliminate a possible PC soundcard hum, mostly found on laptops and low-end PCs. Ederol makes the UA-1X converter that is fairly good.
2nd: Record the album using one of the various free or paid software programs out there. I use Audacity. It is free and can be found here:
http://audacity.sourceforge.net/download/windows
3rd: Youll need to record each side individually. After recording both sides, youll have two computer files. These need to be broken into their individual song tracks and error corrected (if desired).
4th: Assigning track name and other info may be possible using the CDDB, but it may not recognize the files. Manual entry may be the only method.
5th: You can then import them into iTunes as MP3, AAC or other format to play in your iPod. You may first want to burn them to CD in their full-digital form for backup. iTunes and the CDDB may recognize them better coming off a CD rather than your HD.
Do some Google searches. There are many sites that give overviews on how to convert your records to digital. Here are some from my files:
http://www.blazeaudio.com/howto/lp-overview.html
http://www.gmayor.com/CDR_Pages.htm
http://home.earthlink.net/~doniteli/index80.htm
http://www.pcabusers.net/vinyllp/vinyllp.htm
http://www.ganymede.hemscott.net/tutorial.htm
http://www.dak2000.com/reviews/2020story.cfm?GLP#pic9d