Torrents or torrent clients are not actually illegal though (I think). Sure, distribution of counterfeit movies/games or whatever is illegal but not the torrent sites themselves. It is perfectly legal to buy limewire, for example, which maybe not a torrent but still p2p and so the same principal applies.
Their is a fine line between sharing and distribution, Napster got busted on 'distribution' I think. something like that anyway.
Yes Bangkok there is a very fine line i was once something to do with those activities you mention.Their main aim is to go after the big boys which are the scene release groups and the topsites where they can make a big impact in the media world.The chances of them going after your everyday downloader are minimal, but it has happened where Filesharer's have been prosecuted.
The thing is if they cant get the top guy's which they very rarely do because most of the time the files are are held on servers in the netherlands,canada or places that are not under any jurisdiction of filesharing.Although most have pulled out of netherlands due to the bust of OINK which made big news as this was the biggest music site of all.
With just the downloaders if you are caught they inform your ISP, your ISP will then send you an email or letter telling you to stop or they will cut your internet.
hxxp://torrentfreak.com/category/legal-issues/page/3/
they want to bring this in by next year so every ISP abides by it.
Rapidshare is the best way these days or newsgroups