We figure a minor update will restore iTunes' audiobook savvy.

Making audiobook files is easy if you know the secret. Insert your CD and select it in iTunes' Source list; click the Name column to sort the tracks sequentially (bonus tip: make sure the little triangle is pointing up; down sorts in reverse order) and select all of the tracks (Command-A or click and drag). Select Advanced > Join CD Tracks from the menubar, then select iTunes > Preferences > Advanced, set the Import Using pull-down menu to AAC Encoder, tweak the quality settings if you like (the Spoken Podcast setting is usually good for audiobooks), and press OK. Now click iTunes' Import button at the upper-right (or lower-right on iTunes 7) to import the lot as one big file. iTunes 6.x users can simply find the file (Control-click on the track you just imported into iTunes and select Show in Finder), highlight the file, press Return, and change its extension from M4A to M4B to have iTunes recognize it as an audiobook. As we write this, the new iTunes 7.0 disables this trick, but you can use Doug Adams' Make Bookmarkable script (free, at www.dougscripts.com - easy directions included) to convert your files into the proper audiobook format.