Two inexpensive (under $200) turntables are now available that play vinyl records, come with preamplifiers to raise the sound level, plug into a PC or Mac, and create digital and MP3 files. A New York Times article has a nice review of the players, technology, and other options.

The Ion audio USB is a plastic turntable that plugs into the USB port. It requires a fair amount of assembly. The iTTUSB uses Audacity software for digital conversion. The Audio-Technic LP2Da is more sturdy and assembled. It doesn't have a USB connection and instead plugs into your PC's analog input port. The LP2Da comes with Cakewalk Pyro software.