I need to do this also, so I talked to a friend of mine who has been ripping a large collection of classic 78 LPs for the last 5 years. Here are some of his points:
He spent $500 on software for this, yet that pales compared to the time you need to invest. Even with the good software, you need to tweak each track if you need decent results. Of course, old 78s are not going to be as cooperative as 45s or 33.3s might be.
Be sure that the software lets you tweak in real-time. Some don't, and that becomes VERY time consuming. Most software can detect the gaps, and split the LP into separate tracks. Most, if not all, of the software records to a .wav file, and then you would use an encoder like LAME to convert to your favorite format.
Don't expect great results in removing pops and scratches. Although the algorithms are great at removing them, they are not "on-top" of the original audio, but have "replaced" the original audio. That means that removing the pop sometimes leaves a noticeable hole. Some software allows you to "backfill" the hole.
The Ion USB Turntable is simply a belt-driven turntable with a USB audio adapter and Audacity software. If you have a turntable already, it is probably of better quality, and you can buy a USB audio adapter for 1/5th the price or less. The Audacity software is open source, and a free download.
You can download Audacity here: http://audacity.sourceforge.net/