NanoTech Gaming Inc (NTGL)

[IL Padrino]

Hello,
I am new to the board but I have been watching the threads for a while. I am also new to investing. I do own CTKH because I think the company does have potential.
I have some questions about insider information.
1. What is insider information and why do people get in trouble for using it?
2. Would it be considered inside information if you know someone who works for a company and they recommend you buy or sell the company's stock?

Let's say I know someone who works at Lucent and they tell me the company has a good future and they speculate the stock will go up to $20 by next year. Would it be illegal for that person to tell me that and illegal for me to tell other people what they told me?
I haven't been following the Martha Stewart scandal, but all I know is that she got a tip to sell her stocks before it went under. What's so wrong about that? Is she supposed to hold on to those stocks and lose all her money? That doesn't seem right.

Thanks for your help in advance,
Il Padrino