coderecycle you post is a bit vague. But, iĺl explain my setup, basicially i have 2 networks, 1 for work/the internet and the other for learning/penatration testing/hacking (whatever you wanna call it) the second isnt connected to the net.

the second consists of a whole lot of old computers (even a mac! brrrgh), with different OS and setups, and i use it to test out scenarios, host local wargames and generally much around with exploits and find out how they work.

this in my eyes is fun, educational and 100% legal.

hope that helped

p.s. a while ago MSMittens posted a really good wargames doc (setup, implimentation), try searching for that.