In the strictest legal terms, WoW servers are not legal, since they require a (basically) hijacked version of the official server software to run, which is not the property of the people running the servers.
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it's already out, google it
Private servers are Illegal, i would not advice playing and/or making one.
All private servers are "legal" in that they are not breaking any laws. However, Blizzard considers private servers a violation of the Terms of Service of World of Warcraft in general, and therefore, any private servers are actually in violation of Blizzard Entertainment's Terms of Acceptable Use for their software. In other words, private servers are like pirated software, and you should always be careful to be sure your username and password on a Private server NEVER matches any other username/password combination you have elsewhere online.
Private servers are illegal, i would suggest staying away from them.
No they're perfectly legal.