I started this project when I realized that my current computer's (MacBook Pro) CD drive could not even play the few CD+G discs that I owned.  I did however have an old Toshiba laptop that could, with the right software read the CD+G data and convert it to an AVI.  Once that was done, I could pair it with the audio again and create a Quicktime movie to be able to play the songs with the graphics on an iPod, AppleTV, or other players.  Here is what I use...

kJams - Mac based CD+G ripping/converting/burning software.

Audiograbber - a freeware utility that can read the CD+G data off of the CD.

TriceraSoft CDG to AVI - Written for the karaoke crowd, this allows one to convert the .cdg files generated by Audiograbber in to high quality AVI movies ready to convert to whatever other format you desire.

Quicktime Pro - Allows you to merge the ripped audio and AVI files and convert them to iPod format.