The legality of torrents is not in question. The use of BitTorrent programs and torrents themselves is perfectly legal. Some people choose to share copyrighted material which is illegal in some countries. Torrents are becoming an ever more popular form of distributing the Linux OS as well many other free and open source programs. Many unsigned bands are also using torrents as a way to distribute their music. There are whole archives of non copyrighted or out of copyrighted works available via torrents. Mainstream media like FOX, Lionsgate, MTV etc are also using BitTorrent to distribute their works. Now that that is settled.
Now I'm not naive and I know a good portion of torrent traffic is copyrighted works and illegal buy USA law. But this is a question about the basics of how the technology works.
Maximum number of connected peers per torrent is the number of people connecting to each individual torrent say of Ubuntu 8.10.
Global maximum number of connections is the total number of connections that can be made for all your torrents say Ubuntu 8.10, some crappy unsigned band and George Romeo's original Night of The Living Dead (which he released into public domain).
You can check Wikipedia or the official BitTorrent site at
www.bittorrent.com for more info and how you can download movies and music legally.