I am a regular Amithlon user since about a year ago when I installed it on an older PIII-1000 with some help from an Amithlon guide from A1K.org as mentioned by A-Pex.
It works best with older machines about 5-6 years ago. I use it mainly for networking on my home network and the Internet (WWW, FTP). I can also access files on my Windows2000 domain server as well as a network printer.
You can get it to work on newer machines, but you will need the updated kernals and drivers from Gary Colville.
Its faster than any of my Classic Amigas. But it does not emulate the custom chips. So for software that requires custom chip support, you're better off with WinUAE.
As far as legality, if you have a real Amiga (OS3.9) or Amigal Forever, that should cover the license requirements for the ROM's and OS.