This is easy but VERY time and disk space consuming.
You will need:
Winamp with the mp3 out plugin
1. Install all of the above
2: Use vcdgear to convert the vcds dat files to normal Mpeg1 video
3. Open the mpeg file in virtualdub
4. use the save wav option
5. use winamp's optional mp3 output plugin to convert the wav to mp3
Even easier than that. If you have downloaded winamps mp3 output plugin all you have to do is select it for output and then put the cd in the drive winamps should then "play" the cd to the Mp3 ouput plugin thus converting the file to mp3
BTW if you don't have an mp3 codec installed I recommend using the Radium mp3 codec also availible at digital digest.