Use your own judgement. Considering your sig and the fact you even asked, your judgement seems pretty good, even a bit too cautious.
In the fine line of legality regarding "stealing music", downloading music you haven't paid for is definitely on the other side.
Copying CDs to your computer and then to your iPod is definitely on the good side. You have paid for it, you aren't giving it away on the Internet, you are selling it, you (and your family and friends) can listen to it however you want.
The record companies only care about profit. Their goal is to have you pay each time to listen to copyrighted sound. If you play those sounds for others, you should pay more for such a performance. Take a stand for what is "right" and "fair". Laws can and do change. If listening to music you purchased on your iPod is illegal in your country. That is an unfair law that needs to be scrapped. If you are paying for something, and doing what is right, demand to be treated fairly and with respect and to get your money's worth.
And remember, you are on a PC. When you insert any CD, always hold down the "shift" key. Otherwise, the CD can install potentially dangerous software on your machine that could leave you vulnerable to viruses and spyware.