No, the alternative mp3 firmware, Rockbox, is not illegal in any way.
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you cant, because apple lock the firmware on the 2nd and 3rd gen nano, sorry Actually 2nd gen is able to get rockbox so there still maybe hope for the the 3rd gen. :)
Out of the box, no. However, if you load the Rockbox alternative firmware you will have access to a number of other codecs.
no it's illegal no it's illegal no it's illegal no it's illegal no it's illegal
Not in Oregon or Washington, but how you use it can be illegal.
From everything I have researched, no it is not illegal.