Real Audio is a technology developed by Real Networks that includes streaming audio and media as well as a compressed digital audio format to compete with MP3. Real audio carries the .ra file extension and Real Media uses .rm.
Since Real Audio is a proprietary format like WMA, its uses are limited to only the Real One Player and a few supporting portable audio players. The quality is as good or slightly better than MP3. Only your own personal listening tests will show if you prefer Real Audio encoded files over MP3.
Making Real Audio files requires the Real One Player with included Real Jukebox. After you download and install the program, you can find information on how to convert to .ra format. Real Jukebox includes a cd ripper and encoder.