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XBMC has integrated Audio-CD (CDDA) ripping functionality. In order to use this feature, first configure the CD ripping settings (to set which encoder quality to use and where to store the files). To Rip the entire CD, highlight the Audio CD from the My Music root listing and choose Rip Audio CD from the context menu. To rip a single track, enter the Audio CD, highlight the desired track, and choose Rip Audio Track from the context menu.
XBMC will automatically download the album-information (via freedb.org CDDB) and update the ID3-tags with the proper information.
CD ripping settings