I'm in the process of doing this as well. This is how I'm doing it.
First, the gear I'm using. I bought an ESI Juli@ sound card and TC-760 phono preamp from phonopreamps.com. I'm using a Denon LP player from the early 80's (DP-30L) with a newer Grado cartridge.
I use KRISTAL software to record the album sides, all done with ASIO support at 24/96 (though it stores it as 32-bit for the time being). I then export the file to 32-bit/96khz .wav and open the file up in Audacity. I get rid of the needle drop sound at the start, normalize to -.3db, fade in/out at the start end or whatever I need to do. Then I follow this guide to split up the tracks:
Splitting recordings into separate tracks - Audacity Wiki
I then resample to 44100, and export to FLAC.
It takes some time, but I figure If I'm going to spend the time doing this in the first place, I'll do it proper. I leave all the pops and clicks in, if it's there then ohh well, it's part of the fun with Vinyl!
Once you have it all split up into FLAC files, getting the file to mp3 is very easy. I do recommend you store the Vinyl files in a lossless format though, at least as a testament to all the time you'll spend archiving your LP's into the digital realm.