Bump for a good thread. I STILL haven't gotten around to doing this. (..sigh..)
I've had good results from running the output from my stereo (line out) through a mixing board, and then into my soundcard. Using the mixing board allows me to clean the signal a little and boost it up a notch. Then I just record a whole side of a tape as an individual file, and then use a wave editor to mark cuts to split the sides into individual songs. Depending on the size of your hard drive, you can record a bunch of tapes over the course of an evening, and do the splitting and renaming the next day.