Does Wine or WineX require the use of copyrighted libraries (c) M$ that would make it necessary for you to have a copy of Windows somewhere to use legally?

I don't think so, as they couldn't sell WineX as shareware otherwise. AFAIK, they just emulate DirectX to make the games playable on Linux -and we know that emulation itself isn't illegal. ;)

No. Many dlls are freely(afaik) available on the net and the main thing Wine developers do, is substituting them with free/open alternatives. Most of the time, all you need is there.

Using a fake windows drive is recommened over having a win partition - make the deduction yourself :D

From time to time, yes. There's the MFC and MSV .dll's that are needed for quite a few games. And then little stuff like VB6 for the cheats and editors. You can find them on the net, in a few cases, from a ftp or Samba share. ;)

Or just grab your Win98/XP disk and copy them over.