Hi JTT
I use an imac running OSx 10.4, so things may be a little different for you. But here is how i do it.
1. Insert CD which will then open itunes by default.
2. Click on "import CD" in left hand corner. This will then copy all the tracks into the itunes library
3. Create a new playlist (album title)
4. Drag and drop all tracks into the folder

Itunes will only identify the tracks if they are already stored in the gracenotes system. For most big nme releases this is fine, but for lesser known titles you will have to physically input track names, artists, album titles, etc

Does that help at all

LL