I presume you had intended to burn mp3's to CD audio format, then extract them as mp3's. That would mean reconversion back to mp3 which would mean a loss of quality. mp3's should never be reconverted to mp3 again. Converting to mp3 format process means some of the information is thrown away which helps the file reduce in size. How full is a glass of water if some has been poured out before you get it & then you throw more out. lol

But forgetting that, once the music files have been 'properly' added to iTunes they will be available for iPod. Ignore the LW playlists you see, they are not compatible with iPod, & those files have not been added to iTunes Music Library. Of course you can add songs to iPod via synching playlists you have created (not LW ones), or via manually adding songs to iPod (see tutorial how to manually update iPod.)