I just use Creative Playcenter to rip my CD's to MP3's, and connect my Aux out to my stereo. The CDDB feature is cool. if you rip the CD's while on-line, it names the files for you and manages the artist, title, and genre in a database. A real time saver. If you want pure digital audio, you will need a SPDIF out on your computer, and digital in on your stereo. It helps if your computer is close to your stereo, since fiber cables are expensive, and the off-the-shelf lengths that I've found are only up to about 15'.
The one drawback that I've found is that most stereo's only have one digital(fiber)in, and I use it for my DVD player (not on the PC). I don't like swapping cables, so I use the RCA in's for my PC audio. I actually use MediaPlayer for playback, because it has the cool visuals to go with the music. :-)