I started this thread and then I got side-tracked and didn't get back to it yesterday. Guys thanks for all the responses.
I'll check into some of the stuff mentioned here. Possibly. When I originally brought up the topic with the GF, we didn't even discuss legality and ethics. I don't think either of us understands that end of it. Maybe I will bring it up and she'll say, "Oh - then I'll just keep paying," and that will be the end of that.
Here's how out-to-lunch I am: I am not even sure how bad I personally am in this area. ~95% of my CD collection is stuff a friend burns for me. I guess that is all illegal ????
Assuming it is, will I now change my ways and tell my buddy to stop making me CD's? No, I won't pretend that I will.