Few questions

Hey guys

I have 2 questions I hope someone can clarify for me:

1. I understand that the competition bar in google keyword tool means the competition for people trying to bid on that word for adword campaign but what I fail to understand is what can I learn from it regarding to how well can I rank for that word? that is - the connection between the strength for the competition to how hard it is to rank for that word?

2. If I use pictures on my site that I just found on the net - can google consider it stolen and penalize/ban me for it?

3. Is it legal (adsense-wise) if I create a site about lets say Disney's animation and I put on my on page seo "Disney Animations"?

4. Is it illegal (adsense-wise) to put links on my site to illegal sites while my site contains no illegal content itself?

thanks a bunch!

It seems you've got 4 questions, not 2
1-Simply put, less searches equal less competition. You can rank easier, when there is less competition. However, there are exceptions. For example, there might be let's say 10 million searches for a keyword but only 50 000 web pages matching the exact term. This is your competition. It's complicated!
2- Oh, yes, definitely! Don't copy paste pictures. At least cite the source
3- Dunno
4- Yes!
You are welcome!

1. There is no one who can tell how your site would perform on the keyword... But yes, there are a few tools, like Keyword Country, which can give you an estimated profitability of the keyword.

2. No that will not be marked as theft or something... But some other party (owner of the image) can file a complaint against you.

3. Yes, its legal

4. No, its not legal but not advised too... Such backlinks are marked as poor quality backlinks.