d*d, that is an inaccurate statement. Think people taping tv shows. Fair use was put to the test in the 80's when Hollywood tried to sue Betamax over people taping shows (all of the shows, substantial wasn't at issue). They lost as the court said that people merely were shifting when they watched the shows, they weren't copying them for distribution. Same concept applies here. I buy a cd and transfer it to my IPod. It is not illegal, I am merely switching the medium in which I am listening to the music that I legally bought.
For a great article on the Fair Use concept, read this:
http://www.dcbar.org/for_lawyers/was...003/access.cfm