Here's a screenshot of Cdparanoia ripping a CD in batch mode (-B switch), which puts audio from each track in a seperate file.

Copy protections are deliberate countermeasures against programs like Cdparanoia. Some only work on Windows, which won't affect Cdparanoi on Linux, but others rely on tiny changes to the CD-ROM format that cd players ignore, but CD-ROMs in computers will see as an invalid disk. In the end, there is no copy protection that can't be broken, but it will take time for the functionality to make its way into programs like Cdparanoia. Also at issue is the DMCA, which makes it illegal to circumvent copy protections (even from media you bought and own).
Read more here.
CDDB is an online database of compact disc information. Ripping programs can use this to get track names for filenames and to give as much information to the encoder as possible. All data in the database is user-submitted, as very new or obscure CDs won't have track listings. The good news is, if you take the time to submit these listings, others with this CD will have this information. Also, there can be errors in the data, some people make 20 typos per track name and don't bother to fix them before submitting, so look over the names if this bothers you. CDDB works by taking the length and number of tracks and making a unique ID from them. This is slightly error prone, so more than one potential match might be returned from the server.
More info here.
Raw digital audio is large, a typical 2 1/2 minute track will be about 30 megs. Here are three popular encoding and compression formats available for Linux:
Here is a quick screenshot of batch encoding with FLAC. I won't go deeply into encoding as there are many frontends that put all this together. If you're interested in learning more, see the manpages for lame/bladeenc, oggenc or flac

Now that you know what these tools do behind the scenes, the GUI tools should be easy to use. These tools combine all the components above; a ripper (like cdparanoia), CDDB and an encoder. Here are shots of KAudioCreator for KDE and Sound Juicer for Gnome. You can find a directory of related programs at Freshmeat here.

