Are Pokemon ROM hacks illegal
Okay, let's face it, millions of internet people hack Pokemon ROMs. It's not illegal to make them.
It's illegal to SELL them, as in for money.
So, if you make a game using a Ruby ROM, and you load it onto the cartridge and try to sell it, chances are you'll be in trouble with the law. But, if you make it for your own enjoyment, or post it as a patch for others to play, you won't get in trouble.
Besides, there's nothing really bad about it. It's not like the FBI is gonna burst into your house and arrest you and then interrogate you. I mean, it's just editing a game for enjoyment. As long as it isn't put into the consumer buys, it's fine.
Don't worry, you can freely make your game. Just don't sell it, comprende?