1. So you take your purchased CD and copy it on to your hard drive.

No big deal.

2. Then you take your MP3 player and upload your newly copied music.

No problems.

3. You now copied your CD twice and have a total of three copies. Isn?t that illegal?

No, it's all on your machine for your use.

4. Are there any laws on copying your purchased CDs?

Yes. FAIR USE (in US) allows you to make archival copies.

Another Question:

5. Is it illegal to download music from a peer-to-peer network or just to share on a P2P network??

Frankly you know better and ... the answer.