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Follow the on-screen instructions then... (Clearly Apple have changed their T&Cs since I had the misfortune to be an Apple user) You are still facing the issue that CDs don't hold the data in the same way as MP3 players and, although clearly not up to speed in the current version of Apple's...

I can say there is no legal means by which you have done this. Music on a CD is held in a completely different way to it is in any "mp3 player"... these devices hold digitally compressed versions of what is on a CD. To copy from iTunes you would have to both uncompress and convert the digital...

Where to start..? When you buy a track or album from Apple you are actually, in effect, leasing it from them. There is no product you own. You cannot give it, donate it or otherwise transfer it to someone else. It is a licence to listen to that piece of music but no other rights usually...