About the school deal: if you use the computer at a regular, predictable time frequently, then yes they /could/ track you down. However, the actual chances of them bothering is pretty small. Most likely you'll just get it for downloading inappropriate material or what have you.

As for the whole is downloading MP3s equal to stealing, I don't feel that it is. Of course I haven't ever downloaded an entire album, I just tend to go for single songs, so I'm looking at it from that angle.

I equate it to recording a song off the radio, which as far as I know, isn't illegial (yet). The way I see it, the original cd/tape/etc was purchased. Someone had to buy it. The company got their profit.