I've heard of a similar service in the U.S. and when I was told about this here in New Zealand I had some questions - mainly because "format shift" not being legal in this country. It seem the guys at the RipFactory solved this problem by paying license fees when transferring your CDs.
You basically send your discs to The RipFactory and they transfer to a DVD, NAS or mp3 player for you... Sounds good - and it looks like it comes from the guys that distribute the Sonos music system here in New Zealand.