Ok. So I have started a website and want to use/am using celeb pics. I got them from one of those galleries and credited them. I have ads on the site. Is this legal. To have the celeb pics? http://igirlnano.com/
Your site is nice. So you're using Taylor as the celebrity pic posted there. I don't know if its legal. Is it a copyrighted image?
The problem with it, is that I found the image on another fan site. I credit them, but I don't know if they are legal either. Is it fair use? Or is this a grey area?
No, giving credit does not make it legal - it's copyright infringement and you can be sued. It also against the adsense TOS and you can lose your account and earnings if you are reported. All images and illustrations have an automatic copyright upon creation. You need express permission to use any photo you did not take yourself. The celebrity may or may not care, but the copyright is owned by the photographer and they are the ones who can sue you. There are services that license celebrity images for a fee.