Close this chapter.
It was hardware fail.
I replaced my nearly new Asus blu-ray player with an $18 run of the mill unit, and MM works like a charm.
A pox on NewEgg and Asus.
Thanks for the feedback LowLander

I disabled the on the fly and eject after ripping, and it did work to an extent, but it takes a VERY long time before starting the rip/conversion so I still think something is wrong.
My main desktop is using Windows 7 Pro, and the other is using XP Pro, and it is doing it on both with the same music discs.
Just stopped my attempt as it was just hanging on the first track of a new cd.

Now, on my XP Pro, I was able to make it work, by redirecting my path to another hard drive.
I am going to try to replicate that on my main desktop with the Windows 7, though the path is the right hard drive, with tons of space.
Not working. It continues to hang. Despite my diagnostics saying my cd/dvd drive is good, I am going to replace it this weekend and see what happens. That bites as it was an Asus blu ray for my HTPC. I'm losing faith in Asus these days.

In that case you may try disabling features like on-the-fly and secure rip. Perhaps that will allow you to rip the files.

All of them. Yes, Tools>Rip Audio Cd

Does it happen with all CD's? (I presume you're using Tools > Rip Audio CD)

I put in my cd, have changed no settings for the last six months, and the process just hangs. It does no conversion.
When I terminate I get messages that there were errors with the first cut, or the second and so on.
Same thing is now happening with my other desktop.
Lyndon

You'll need to explain what wall you hit.

Lowlander,
I have hit a wall converting my cd's to FLAC. It is happening in both my desktops. First, I thought it was my reader/player, but since it is happening in both my machines, it must be something happening with my MM. Never had this problem before.
Ideas? Clues?
Thanks in advance,
Lyndon
Salt Lake City, Utah