Well, I remember reading numerous times that LW was completely legal. My computer is now free of all the material, so I'm not too worried anymore.

The aforementioned friend downloads practically all of his music files from LimeWire, and he transfers many of them to me via AIM Instant Messenger, so I am particularly concerned about that.

EDIT: I followed your link and I see that it says nowhere currently that it is a completely legal program, but I am absolutely sure that it did when I first downloaded the service.