| You will lose quality in recording it this way.
This option has been suggested several times in this forum for users who aren't able to back up audio protected CDs.
The thing is, you convert audio to a analogue signal and then through analogue connection you save it in a digital format. You will have two important steps where quality loss occurs.
Perhaps when you use a high fidelity CD-player that supports optical out, then connect the optical out to an optical in of your soundcard. There will still be a slight loss of quality, and you will have to have a pretty good stereo and PC setup, but this is the second best option as far as I can see
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