CD Burning and Compression

You could always use the lower bitrate.

Really? I'm surprised. I wouldn't think a good codec would behave that way. Of course, MP3 isn't the best codec out there. I may give this a try, but I'm skeptical in the meantime.

If you ever listen to an mp3 file that has been converted to CD you will hear how compressed it is.

Careful on the MP3s--you're talking about two different kinds of compression. MP3s and other codecs are doing data compression. What you want is dynamic compression--raising the soft parts and lowering the loud parts, so to speak. A good MP3 should not do that--it should sound just like the original, assuming you use a high bit rate. I've never heard that reduced dynamic range was one of the artifacts of lower bit rates, though I don't have enough experience with them to say for sure.

CD player will not play MP3's so I would have to add a unit which I have considered given the amount of music I could get on CD. I have a Wintel pc

I have a similar problem with some classical CDs in my car--all that great dynamic range means that ppp sections just disappear in the road noise. Never had that problem with cassettes taped off LPs!

I can't say for sure, but my guess is that CD burning software will not suffice for this, and you will want some audio processing software which goes beyond the usual noise-reduction designed to clean up digitized vinyl. Can't help you with specific recommendations, however, as I haven't tackled this one myself yet. Are you using Wintel or Mac?

Use mp3's and not only will you get compression, you can put a lot of music on a CD.