are there any legal issues when we setup a Script Like digg but used to submit links of music one of my friend wants to set it up also purchased a domain too We say that we don't upload any thing we just let users link their pages from our site
If you are in the US (and some other countries) then having links to infringing material will be seen as contributory infringement. As the links would be user input, if he followed the guidelines listed for service providers in the DMCA safe harbor provisions then theoretically he would be legal (requires registering an agent with the copyright office). However, these are the same provisions that protect YouTube which gets sued all the time.