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.ogg is a free audio format alternative. It features sound quality that is generally higher than MP3, and has no licensing fees. Ogg Drop will encode audio tracks and CD's into .oggs. Ogg Drop is entirely free.
Ogg Drop includes a CDDB lookup of the FreeDB music database. Stick an audio CD into Ogg Drop, and it should be able to identify the songs automatically, and tag the songs for you.