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Does this mean, you are not allowed legally, or you just cannot?
It won't on iPods.
As for burning a CD, I guess that's up to how "creative" the individual is.
From FAQs:
Q: Does SpiralFrog support transferring music to a portable music player?
A: Yes, you can transfer SpiralFrog music – songs and video – to up to two portable devices. The files you download from SpiralFrog are not compatible with an iPod or Zune, but work well with most other portable music players and music phones. You can find a partial list of compatible devices here:
Q: Are files downloaded from SpiralFrog compatible with the iPod or Zune?
A: Songs and video files that you download from SpiralFrog are not compatible with Apple’s range of iPods or Microsoft’s Zune.
Q: Can I burn SpiralFrog songs to a CD so I can play them in my car?
A: Songs downloaded from SpiralFrog may not be burned to a CD. The songs are great quality, and they’re legal, but the record labels that allow us to let you download for free draw the line at CD burning. However, you can synchronize the music you download to up to two portable devices, which you then may be able to connect to your car stereo.
EDIT: You can only run Spiral Frog on Windows XP or Vista.
THe problem is the iPods, and I assume also the MS Zune players, have a type of copy protection built in. So if your legal mp3's have a difffrent type of copy protection, thenthey don't work.
That's one reason I don't like the iPod, it's trying to do a lot mroe than just play music, it's trying to verify the legaility of every file you load.
Anyway, I'm sure there is a hack for this somewhere, try to find a spiralfrog user group or forum.