Reply #6: Here's the industry's official position: [View All]

[Junkdrawer]

It’s okay to copy music onto an analog cassette, but not for commercial purposes.

It’s also okay to copy music onto special Audio CD-R’s, mini-discs, and digital tapes (because royalties have been paid on them) – but, again, not for commercial purposes.

Beyond that, there’s no legal "right" to copy the copyrighted music on a CD onto a CD-R. However, burning a copy of CD onto a CD-R, or transferring a copy onto your computer hard drive or your portable music player, won’t usually raise concerns so long as:

The copy is made from an authorized original CD that you legitimately own

The copy is just for your personal use. It’s not a personal use – in fact, it’s illegal – to give away the copy or lend it to others for copying.

·The owners of copyrighted music have the right to use protection technology to allow or prevent copying.
Remember, it’s never okay to sell or make commercial use of a copy that you make.

http://www.musicunited.org/2_thelaw.html#5

So what they're explicitly saying is that IPods and MP3 players are illegal, but we'll look the other way if we feel like it.