Originally Posted by Rock

I've spent most of my adult life in a fighter squadron. Cutting and pasting people into inappropriate situations is par for the course, and to my knowledge, has never resulted in legal action. With that said...if someone were to photoshop a picture of me holding hands with Jane Fonda or holding an "I vote for hope and change" sign at a political rally...well, we'd have some issues then.
I would suggest, however, that if you think there is money to be made in lawsuits regarding damage caused by internet defamation, you get in touch with this guy (Looter Guy):

There have been more photoshops made of him than there are paintings in the Louvre, and he could clearly use a few bucks. The two of you will end up richer than Bill Gates and Paul Allen.