Well, I know this thread has been taken off topic somewhat, it is interesting to me anyways...
I do not own TrackIR but I have recently installed Freetrack and modified my webcam (which in itself would be in disagreement of it's eula would it not?).
The setup works 'ok'. I presume TrackIR would be smoother etc etc but for a somewhat larger price.
I took for granted that the Freetrack team were not doing anything illegal but in fact were just entrepreneurial. But on looking at the arguments from both sides of the issue I feel I will have to reassess whether I use Freetrack or not. I am interested in what otheres think....