Just download iTunes, connect your iPod and let it sync with iTunes, put in your CD and let iTunes rip it to your hard drive at whatever bitrate you want, then transfer to your iPod. Lots of tutorials on the net and iTunes has a good help section that will walk you through it.
As long as you bought the CD and it's your iPod, your good. Legally you can't use someone elses CD or iPod, you must have purchased the music yourself.
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