Don't forget that downloading may be considered legal now, but that intellectual property rights still see MP3s as copies of the original, which they are. You are only allowed to have one copy and only if you have the original which has been payed for. So legally you have to have the original of every MP3 on CD or the MP3 has to be purchased on the internet from the owner of the rights.
Today a Dutch court ruled that Kazaa is not liable for profit losses of the music industry due to sharing via Kazaa. Of course this ruling has no implications for the legal position of the uploaders and downloaders who use Kazaa.
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