Allofmp3.com, a Russian website offering high-quality downloads for 2 cents a Mb is likely legal under Russian law, which only covers piracy in physical media. This site is cheap and well-run, has simply amazing scope, and is even translated into clunky but accurate English.
The most interesting part of this story to me--though there is plenty more to write about--is Paypal's involvement in this tale. This article claims Paypal pulled its service because it questioned the legality of the service, suggesting to me a fear of contributory copyright infringement, a la Aimster. But if this is true, why didn't the major credit card companies also refuse to support the site? The article also suggests that now that the legality of allofmp3.com (at least in Russia) is affirmed, Paypal might join the site again, eliminating some barrier to buying from the Russian site. This barrier concept is just silly; concerned consumers can just use temporary credit card numbers. I do this for sketchy domestic sellers. I suggest Paypal has bigger problems with the site, perhaps fraud or customer service or just reputation; if it doesn't, it should. Paypal, or anyone else looking at this site, knows this offer is too good to be true.