Yes. Tunebite does not bypass any copy protection. It re-records analogue audio signals.
The audible and video quality of the piece of media will not be lost. Tunebite uses .ogg or .lame with adjustable bit rates.
At present, Tunebite works with Apple iTunes (.m4p, .m4b, .m4v), Window Media (.wma, .wmv) and Audible (.aa) protected files.
No. Windows XP with at least 600 MHZ and a full duplex soundcard is enough.
Yes. However, this is not recommended, since high load peaks might result in dropouts in the piece of media. External applications might also introduce Wave-Out device signals, which will be audible in the song afterwards.
No. Tunebite can only record pieces of media that are purchased legally and that you can then play back and re-record legally. The media files must still be purchased from online music shops.
No. Tunebite is not opposed to the music industry. On the contrary: Tunebite supports the music industry by making online music offers even more attractive.