Is this possible and is it illegal?

Ok this is a bit rediculous. With out knowing why you think that you are been bugged everything is complete speculation.

What you think is bugging could be something completly different.

I am just finishing my forensic computing degree so if you have any more info i might be able to help more

While a phone line can be bug to trace, the internet is different. In order to get internet traced, you have to have downloaded or come across something illegal. If you have a single internet protocol (ip address), its more easier to get tracked. Usually if you are not safe, you couldve come across a keystroke logger(keylogger) or virus that sends your information to a person. I had one experience where someone would take pictures(screenshots) of whatever I was doing and making my life miserable.

Internet cant be just "tracked" for say FBI or anything, they would have to some how get through your computer. Easier done if you have a weak security system/anti-virus/Firewall etc.

In order to delete these things, fastest way I would say is to save inportant files, then do a complete format by inserting a windows xp disk and restarting it, delete and repartition your drive and start clean and over. Remove the battery from inside the system. Change internet service provider if you are really sure. That way there is no trace at all.

Good luck. Dont be so afraid though.

I would tell you how to clean it, and really check, but it is a long process, to go through registry, files and whatever.

There are things that can monitor your activity on the computer without you being aware, for example her parents/husband/whoever (I don't know how old your friend is or who she lives with) may have installed a hidden keylogger onto the computer. They record every keystoke and take screen shots, and email them to whoever set the keylogger up. There are many of these that are undetectable to a certain extent, making them difficult to find.

In regards to whether or not it's legal or illegal well that depends on who owns the computer and who else has access to it.

It is more likely someone has access to one of your machines, or that you are using an open wireless connection. For line bugging only your ISP can really check this, they would want good reason to do so.

it can be done only if they bug YOUR system with a keystroke recorder or maybe if they gain access to your system while u wer online but that is very complicated and i would have to know a lot of things before i can say if that happened.. as far as the legal context is concerned yes its absolutely ILLEGAL...

This could happen through a trojan. It might be related to a keylogger. The way you can remove the trojan, or the keylogger, get a good antivirus, or spyware remover, and everythin' will be ok.

with strict pri\/acy laws its easily to say that its illegal.

Could you please specify why you think that.? This way, we have a clue where to start looking for solutions...