When you turn a CDs into MP3s to upload to your iPod you are breaking the law. In Australia copyright law does not allow for media shift.
The SMH reports that the minister for communication is considering amendments to the copyright legislation that legalise this media/format shift. You will be allowed to turn your CDs into MP3s, and be allowed to record a TV show to watch at a later time (but only once).
The proposed changes do not legalise media shift of DVDs.