It's not strictly legal over here in the UK but no-one cares.

Everyone understands that Apple are way too restrictive and to be honest, I wouldn't be surprised if the cops even jailbreak their iPhones.

I know David Cameron, Prime Minister of England, certainly does. He follows Geohot on Twitter.

The UK government will not 'legalise' jailbreaking because it has never been proven to be illegal.
If anyone was actually prosecuted for jailbreaking then they would do something about it but as no one has ever been prosecuted it is not necessary for them to do anything.
That is what my MP told me when I asked if the UK was going to 'legalise' something we all know is legal anyway.
Most of British law is case based - unless someone proves it's illegal by testing it in the courts, it is assumed to be legal.
If anyone in the UK thinks it is illegal then, by all means, take me to court so we can get a definitive answer.
I know it is legal, so do Apple.

Well from what I understand it certainly isn't illegal as there is currently no law against it. However it most likely voids your warranty. I also understand that you are allowed to modify copyrighted material but you are not allowed to distribute it.

There is no law stating that jailbreaking is illegal, however a contract is a legally binding contract. You sign one when you agree to the Terms activating the iPhone. I don't know about activating through other than an official carrier activation or iTunes, but activating through iTunes requires you agree to them. Those terms state that you agree to not make any changes to the software. Also states that doing so invalidates the warranty. All this taken into consideration, I have jailbroke my 3G, well after its warranty expired.

There is such as an unfair contract. If Apple thought it would stand up in court I'm sure they would have prosecuted. UK law is based on case law, until it's been tested it is not legally binding.
As for the Warranty, they have no obligation. That does not mean that they have no legal obligation, warranties can't affect your statutory rights and the statutory rights in Europe are probably better than Apple's Warranty anyway.
If Apple did manage to win a case ruling that JailBreaking broke the terms of their contract *which I'm sure they wouldn't) then the UK Government would look at changing the law.
Of course, Apple will never bring a case as they know they would lose and if they don't bring a case then some people will still think it is in some way 'illegal' and shouldn't be done.
Those people are wrong.

According to what i have read JB is 100% legal but it allows illegal thngs like instaling paid apps for free.... that is piracy

You can say it is un ethical coz AT&T in the US had the business sense to see what apples iPhone was and they made an exclusivity deal. AT&T is a business and they have the right to juice out as much profit as they can. As for as i can see they are unfair but not completely unreasonable. Business is business

with that said if u void the warranty... which jailbreaking does is personal choice and NOT illegal.

I think unlocking the iPhone.... not jailbreaking might be illegal

Unlocking a phone in the UK is not illegal.

Pirating software is illegal. But if Apple wanted to stop that there are far better ways than stopping Jailbreaking.

name 3 far better ways they can stop pirating

Try reading Oh no! Complicated stuff! for starters.

oo good stuff good stuff.. it does seem like that Apple is avoiding the piracy scene in lu to preventing jailbreaking