The rip format, quality and rip location can be changed inside the Media Player or iTunes applications.
To change these settings for iTunes, open iTunes - go to the edit menu - choose Preferences - click the Advanced Tab. Change the rip folder location on the General tab. Change the rip format and quality on the Importing Tab.
To change these settings for Media Player, open Media Player - go to the tools menu - choose Options - click the Rip Music Tab. Location, quality and format can all be set here.