I have cooledit as well, and I've never been able to get it to extract from a cd on 98 or xp. Use soundforge 6, cd arch 5. Or go to download.com and download a cd extractor.
while your at it, download this software, it free. It's a file converter, you can convert your files just by selecting and finding the software in your right click options. You will never have to manually convert mp3 to wavs or wavs to mp3's again. It can do some other stuff, and might be able to extract from cd too, but I don't need it to do that, the software is called
dBpowerAMP Music Converter
it's a good lil tool