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not being an expert on the subject I'm still pretty sure that a regular Music CD is 16bit/44.1 kHz or there abouts, I don't think sound quality will improve if you upsample it? more knoledgeble people will correct me if I'm wrong of course

Well, first you begin by posting in the AAC --> General forum instead of the MP3 --> Tech forum.

To rip CDs, you should use Exact Audio Copy instead of Nero as it uses a secure ripping method.

CDs have 16 bit resolution and a 44.1 kHz sampling rate; resampling to something higher will not increase the quality.

To encode AAC files with Nero, once you have the main program open go to Extras > Encode Files..., click the Add button, add the files you want to encode, choose MPEG-4 Advanced Audio Coding (AAC) (*.mp4) from the Output file format: drop-down menu, click the Settings button to configure the settings, and once you've done that click GO.

Under settings, I recommend using one of the VBR presets which uses LC AAC. I use Transparent for my needs; you might need something different.

You can also encode with the Wave Editor or with NeroMIX, but I haven't used those.

Edit: Related threads:
http://www.hydrogenaudio.org/forums/index....showtopic=11324
http://www.hydrogenaudio.org/forums/index....showtopic=10000