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Emulators are legal; always will be. Thats never been an issue ever, though Nintendo are being jerky about it due to deep pockets; pretty much everythign in their patent is invalid.
Anyway, the issue is always ROMs; ROMs are of course 100% legal.
Distributing ROMs is illegal, just like distributing movies; you don't have the right to copy them to others, and they don't have the right to copy them to you; so downloading them (even if you own the cart) is illegal; ripping your own cart, buying them from starroms.com, copying them from another ocmmercial emu or other things are fully legal ways of getting ROMs..
jeff
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