This article is from the Miscellaneous Macintosh FAQ, by Elliotte Rusty Harold firstname.lastname@example.org with numerous contributions by others.
First you must have a CD-ROM drive that supports this feature.
Currently this means an Apple CD-300, CD-300i or CD-300+ or a drive
built around one of the following mechanisms: Chinon 535, CDS-535;
Hitachi 6750; NEC 3x, Sony CDU-75S, CDU-76S, CDU-561, CDU-55S,
CDU-7511, CDU-8003, CDU-8003A, CDU-8004, and CDU-8005; Toshiba
3301, 3401, 3501, 3601, 3701, 4100, 4101, 5201, 5301, 5401, and 5901;
Matsushita CR-8004 and CDU-8004A, CR-8005 NEC CDR-400, CDR-500,
CDR 510, CDR 600, CDR-501, CDR-511, and CDR-900; Pioneer DR-U124x;
Plextor PX-43CE, Plextor PX-43CH, PX-45CH, PX-43CS PX-45CS, PX-63CS,
and PX-65CS. This is not a complete list. Most non-portable CD
drives sold in 1995 or later, support this feature. However, many
third-party drives lack some of the audio features of the later
Apple CD drives. The drives that do have more audio features are
normally based on Toshiba, Sony, or Plextor mechanisms. Drives
notable for not supporting digital audio extraction include the
Apple CD SC, the Apple CD SC+, the Apple CD 150, and the Apple
If you have a non-Apple drive you'll also need FWB's CD-ROM Toolkit
software, about $55 mail-order, since the driver software bundled
with non-Apple drives doesn't generally support digital audio
extraction. Next you need Quicktime 1.6.1 or later and an
application that can play Quicktime movies such as Simple Player.
Turn virtual memory off, put the CD in the CD player, and choose
Open... from the File menu of Simple Player. Open the audio track you
want and click Convert. Type a name for the new movie, choose a place
to save it, and click save.