On the subject of Honeypots being protective vs entrapment, here's a nice .PDF for you guys to read up on. I think it's only about 5 pages worth. I read it and it seems a legal 'fine line' if you will. It appears though, that law enforcement officials have an easy way out of being charged with entrapment, they have use someone who is not a law enforcement officer to set up the honeypot.
Check out the bottom of page 3, Societal Issues. This deals alot with the question in hand.

http://www.sosresearch.org/publicati...2honeypots.PDF