[quote name='Geek99' timestamp='1411381738' post='2558866']
i think making personal copy has always been legal; i think its distribution, publication, public performance etc thats always been the issue.
[/quote]
Previously, ANY copying of copyright content, even for personal use, without the permission of the rights holders was illegal. The law is being brought up to date (following the publication of the government's 2012 'Modernising Copyright' document) to reflect new technology use.
There are a few grumbles about this private copying exception, because, like JTUK says, it is not crystal clear what can and can't be done with the copies, and the copyright bods want to enure that they/the rights holders will not lose out.
http://www.ipo.gov.uk/hargreaves-copyright-techreview
http://www.ipo.gov.uk/ia-exception-privatecopy.pdf
Pedant Edit: document describes it as unlawful, rather than illegal - not sure what the difference is, if any?