I don't have a good link (edit: link added) but I just read where RIAA attorneys have filed in a lower federal court that ripping audio cd's to your computer as compressed mp3's is a copyright infringement
However they admitted in 2005 in the Grokster case before the US Supreme Court that it was "fair use", as in transfering to your Ipod.
Give them enough rope and they will hang themselves come election time.