Its not that complicated of a process. The key issue is your sound card. You have to have a really nice one to get decent sound. The line-in record quality of most sound cards is much worse than its sound output. I would use at least a SB Audigy, or Audigy 2. Another good card is the Turtle Beach Santa Cruz, but I don't think they make them anymore. You can prob get one on ebay.
After you have a decent soundcard, just connect your cassette player to the line-in jack on the sound card. You will probably need a stereo RCA to 3.5 plug adapter cable. There are a few free audio recorders, but I have never tried them. I think they are called Kristal and Audacity. If you want good quality, and can afford to pay a little, you could get Adobe's Audition software, or Sonic Foundry's Sound Forge. I use Pro Tools, but thats WAY overkill for what you want.
But overall, its pretty easy. Get a good soundcard, connect it via line-in, and get a audio editor/recorder. You can then burn the WAV files to CD with Nero, or compress them to mp3s with LAME.
Yea, what he said. What I do is capture all of my audio with jet audio, convert my lossless file to Mp3 or Wave, then use Audacity to split the one long file into tracks. But you could do it after every song too.
