If you live in the US or a country in the European union then it is. I'm not sure about other places.
Jail-breaking an iPhone is illegal, but jail-breaking an iPod Touch is not.
Its not illegal in Canada. I think now it legal in the US now
Around 2 years ago they made it legal
Yes, the iPod Touch with the 2.0 software can be jailbroken.
no
DON'T
no you have to download software on youre computer.
Yes you can. But its not reccomended.
Adding Themes is only available to Jail broken, iPod Touch, and iPhone users.
Around August
99c
Yes .. Because you are allowing a virus into your iPod and it allows your iPod to be slow.