<<I was thinking about setting up a hackintosh. First is it illegal>>
http://www.google.com/#hl=en&sclient=psy-ab&q=Hackintosh+illegal%3F&oq=Hackintosh+illegal%3F&gs_l=hp.3..0i30l4.3641.10219.0.11594.23.14.2.7.8.1.625.3404.0j8j3j1j0j2.14.0...0.0...1c.pcGWigy88uE&pbx=1&bav=on.2,or.r_gc.r_pw.r_qf.&fp=e7f24798c128fce0&biw=1440&bih=699
Seems clear enough to me. Violation of the EULA governing the Apple software.
"Illegal" obviously means different things to different persons, governed by their own self-interest, unfortunately.
Since I have no self-interest (unenlightened or otherwis) on this question...I give you a clear and honest answer.
"A computer built to run this type of Mac OS X is also known as a Hackintosh,[1] a portmanteau of the word "hack" and the name of Apple's main brand of computers, Macintosh. Hackintoshed notebook computers are also referred to as "Hackbooks".
The Apple software license does not allow Mac OS X to be used on a computer that is not "Apple-branded"."
Quote per wikipedia,
http://en.wikipedia.org/wiki/OSx86 .
Seems quite clear to me.
Louis