creating MP3 files

I am a relatively new user of the internet.  I am 
operating Windows 95 and Internet Explorer 6.   I have a 
cd player and real player.   Do I need any other equipment 
to create an MP3?  If not, how do I proceed;  if yes, what 
do I need to download or is my Windows 95 too old to 
assimilate the equipment needed?   Many thanks!