It is a waste of time and money and it only has any effect on legitimate paying customers. But it doesn't appear to harm your system: loads of my games have it and my system's fine...
Q1: Spyware is software that is downloaded onto your PC when you visit some sites (or it can come with files that you download). It slows down your PC and it monitors what sites you visit as well. In the worst case scenario, it can wait until it finds a credit card number or such like and 'report back to base' with it: don't ever have important financial details on your actual system. It is best gotten rid of as soon as possible.
Q2: If your PC has it, it will slow down noticeably and you'll probably get advert popups more than would seem normal.
Q3: That's how it usually gets onto your system first. I have a policy of d/l all files to a USB drive first, where they're scanned. If nothing is found on them, they go to the main download folder on my PC. If something is found, then: Hasta la Vista, baby!
Q4: No, Norton is an Anti-virus software, not a good one either: have a search round, people mostly have bad things to say about Norton, not least that it slows your PC down. You need an antispyware package as well.
Myself, I have: AVG 8.0 - it includes Anti-virus and anti-spyware.
Spybot Search and Destroy
Adaware 2008
Windows Defender.
The reason I have more than one is if one of them doesn't catch something trying to get onto my system, another usually does. But remember, you have to scan on a regular basis - I do so once a week - and keep them updated, otherwise they're useless.
Q5: True, but it's still illegal and can land you in hot water if caught. Can't remember which issue, but PC Gamer had some pretty frightening stories of the fines people received through their letterboxes!!
Q6: Overzealous censor!!!!
Hope that helps!!
