The story about the little girl that was charged with file sharing that you refer to, appeared on the Register awile back. Here is a link if you wish to read it.

*edit* this is the real link the one below it is a commentary on the above message *edit*
http://www.theregister.co.uk/content/6/32731.html
http://www.theregister.co.uk/content/35/32790.html

Seems like the piracy debate will never end. I've heard that so long as you legally own a copy of a cd, you can have it in any form that you like, (e.g. mp3). But the illegal step is sharing that out to others which violates that act. Maybe it was on the register that I read that someone was tried for file sharing even though they owned the cd, because it was proved that the rip didn't come from their cds.

Maybe someone else has heard of this??