Clarification --trythil wrote: No, because of the OTHER law that AMVs break, which is that nobody else but the copyright owner of a work can authorize a derivative work. The only "legal" AMV is one that (a) uses totally original audio and video or (b) has secured permission from copyright holders. Even then, if you ripped the footage from DVDs or defeated Macrovision, you could still be charged under the DMCA.
God bless America, my home sweet home.
I don't know all that much about Australian copyright law (hell, I don't know that much about US copyright law ), so maybe you'd be fine. AMVers in the US, though, are breaking laws left and right when you AMV from DVD source.
Practically, of course, it doesn't matter, since we're all just small-fry.
At least it doesn't matter until a proper DRM implementation starts becoming mainstream. I doubt you'll be able to rip DVDs for long, then.
And that's your daily dose of slashdot-induced paranoia.