Best way to save cd collection?

Need advice on how to save my cd collection to a lossless format and play on my stereo system. Can someone give me a very, very simple explanation of what equipment and/or software I need? Keep in mind that I'm computer challenged. I have an iPod and would consider buying a DAC and Wadia docking station. Would also consider buying a laptop computer if necessary and "streaming" the music to my sytem. My goal is a simple, inexpensive approach that doesn't compromise the quality of the music. Have I mentioned that I'm computer challenged??