MP3 Songs should be stored on a seperate partition.( ie: if your operating system is on Drive C: then it is better to store MP3s on Drive D:)
It is better to store MP3s on a hard disk than on CDs since when there are too many CDs it is a pain to listen to any music.
It is advisable to have backups of all your MP3s on CDs this helps if your computer crashes and your hard disk becomes corrupt or some thing.
It is important to tag your MP3 files at the beginning when your collection is really growing since it is really tough later on to organize it.It is better to name the files with Artist Name - Song Name. and have seperate folders for each artist. This helps locate the music easily and saves you time everytime.
Creating Playlists are the simplest way to be able to listen to Music according to your choice mood etc. You can have a Playlist with only english songs or only Hindi or only rock.
Some good FREE Software.
To Rip from CDs to MP3: Audiograbber 1.81. It is free and supports lot of formats such as WMA, OGG Vorbis etc. It is also reasonably fast and can Automatically tag your files using the FreeDB database through the internet.
MP3 Players: Winamp 2.9 is the best. Simple user interface and all the functions you need to listen to music. Windows Media Player 9 is also good with a good rating system and auto playlists.
Taggers: There is a lot of free software available to tag MP3 files https://TUCOWS.COM is a good place to find it