Hmm, Windoze's iTunes ,huh?
Ok, first things first.
If you read in the forums that LW automatically transfers your songs to an iTunes playlist, then that's only for Macs, unless you are using one of the lates betas (of LW).
Now, in order to get your songs into iTunes in .mp3 format, you have to find the Options. It's should be under File (I'm taking a guess here as only know the Mac version too).
When you find it (and hoping that the Mac and PC versions of iTunes aren't entirely dissimilar), go to Import and choose your encoder.
As to how to import songs into iTunes, you can drag-and-drop them, Add them to Library, double-click them (probably works only if iTunes is set as the default player for .mp3s).
To burn, LOTR's tutorial images should be more than enough (Use them. He probably spent some time on them
)
And how come you can't use Nero? I'm sorry if I sound a little cocky, but I am on Macs and I imediately knew how to use PC's Nero to make a basic Data CD as well as .mp3 and Music CDs. I barely know how to navigate in a Windoze PC. And I'm no computer genius.
Play with it a little. You'll figure it out.