I've never heard of such a service, but I wouldn't be surprised if it were illegal (in the US).
I know you didn't want this advise, but I just ripped about 300 CDs to FLAC, and it took me a couple of days, while I was doing other things. In fact, I'd think with some young kids around it would be an ideal time to do this. I remember doing mundane tasks like this when the infants couldn't go to sleep and such.
Plan-B: How old is kid 1.0? I paid my 4 year old $.05 a CD to rip a stack of CDs. (That was with iTunes. You just had to place the CD in the tray and put in back in the case when the ripping was complete. iTunes automatically ripped and ejected.)
