"it's rippin' rip rip rip rippin'!" No, you lamer ripping a game is when you make an iso of a game. You rip the image ( not literally) and copy it to your computer in iso form. ... who rock around are tricken... love that song!
it's simply packaging the cd into some sort of format so it can be traded/recreated.. (ie you 'rip' a cd into mp3 files or a game into a bin/cue)
a more precise definition would involve actually removing/repackaging to make something smaller, yet still playable/working.. ie; they take out audio tracks or downsize movies on DC/PS2 games to make 'em fit on a cd, or take just enough of the data on a game cd to play it in the pc warez scene (ie; no audio/movies - take a 650 meg cd and just extract the 40 megs that you actually need to play the game)
EG; if you take a sega cd and use cdr-win to make a bin/cue of the entire disc, you "IMAGED" the disc. if you extract the audio tracks and compress em with mp3 (or maybe even remove 'em entirely), you "RIPPED" it..