What *IS* illegal and what the RIAA would like you to *BELIEVE* is illegal are two different things. (Unfortunately, since it seems the republicrats are all too happy to bow to the RIAAs will, the differentiation between the two is growing smaller and smaller). It is, currently, legal to make as many copies of a CD as you want for yourself, so long as no more than one copy is playing at any given time. It is legal to play your CD in your house while others are there, so long as you're not charging them to listen to it (hence, clubs must pay licensing fees for the music they play, beyond just paying for the CDs). So, play CDs in your car all you want, even if others are there. Make as many copies of your CDs for yourself as you want, so long as you only play one at a time.
Now, just to show you how the RIAA, et al are inching their way towards making FAIR USE illegal, let us look at the current situation. At the moment, it is legal to do the things I outlined above. HOWEVER, if you have a CD with copy protection, it is ILLEGAL to make copies for yourself, even if it fits those guidelines mentioned above. WHY? Because of the wonderful DMCA, pushed forward by the entertainment industry. It makes it illegal to circumvent any copy protection scheme, even if you are doing so for a legitimate reason.
The first step towards illegalizing fair use has already been taken, and the second step is in the process as we speak. The INDUCE act will, in effect, reverse the betamax decision which says that all these things are legal. It is why VCRs, iPods, CD copies, and many other things are legal. However, there are many powerful people and industries attempting to push the INDUCE act forward, despite the overwhelming show against it with "save betamax" day a few days ago. So, it is important to do all you can to let your representatives know that you do NOT support the INDUCE act, and you don't want them to either.
More information about the INDUCE act, and what you can do to fight for your fair use rights, visit the following sites:
http://www.corante.com/importance/
http://www.corante.com/copyfight/
http://www.savebetamax.org/
http://www.downhillbattle.org/