The xbmc has a great music library system but you want to get your id3 tags right first time. I've recently ripped through my cd collection and wanted to get it right - finally.. all nice and tidy.
AudioGrabber is the best bit of cd ripping kit i've found out there. i'm sure there's others but the clear advantage with AudioGrabber is the ability to handle track artists rather than just album artist. Xbmc will pick up on those and just makes all those compilation CDs rip just fine.
You'll also find Tag&Rename, Mp3Tag (for it's integration into windows explorer) and a bulk renaming utility very useful. I use 'Bulk renaming utility', does what it says on the tin. Good for tv show rips as well but more of that in another post.