Hi and Welcome....
Firstly to stay safe and how to use Limewire wisley you need to some reading....
http://www.gnutellaforums.com/gettin...ser-guide.html * WARNING: Viruses on network you should be aware of! *
To answer your other enquiries, Yes you can use your downloaded MP3's on your ipod....
How to transfer music to my iPod (& iTunes)
Limewire is legal how you choose to use it may not be. ie It is not legal in many countries to download and upload copyrighted material...