Even assuming that it isn't copyright infringement to rip your own CD, and I don't believe there is 100% agreement on that subject--ripping the CD that someone else owned is clearly not authorized, so it is an infringement. I suppose the remaining question is whether it is fair use, and I can't see how it would be. Definitely an infringement if there is DRM on the CD--then there is no fair use defense.
Logically, there is no difference between a public libray and what Mr. Tennenbaum was doing.
Well, there is. The library is covered by the first sale doctrine, which allows the copyright holder to control only the first sale of copyrighted material. So the library can lend the materials without fear of copyright infringement, the same way that a used book store can sell books without copyright infringement.
But the first sale doctrine doesn't apply to copying or reproducing, which is what our buddy Tennenbaum was doing. The library can't make a copy of the CD in order to lend it out, and Tennenbaum can't make a copy of the CD to put on his computer.
OK, thanks for the clarification.