I was thinking of starting a website where you can watch free movies. Now I know it's illegal to host movies, but what if my site just embeds a movie from another site who is hosting it? BTW, if it is legal, can I charge users a small fee just to access my site?
Too bad you don't live in Sealand. The Grokster case held:
Producers of technology who promote the ease of infringing on copyrights can be sued for inducing copyright infringement committed by their users.
In other words, no it's not legal in the US.
Saturday night laziness, quotes are from Wikipedia.