To add to my response in the thread linked by mavrik, there was significant SC discussion after that post, and the conclusion was that, when used within the spirit of the basic editing rules, many of the tools in the plug-in would be legal.
The basic rules do, however, prohibit effects filters, many of which are included within the plug-in. This is where it gets interesting. If all you are doing is playing with color effects, you're likely OK, since these effects can also be obtained very easily with the tools available in many image editing packages (hue/saturation, levels, curves, etc.) If you are applying an effect that changes more than the color, you may run afoul of the rules.
I know this is not a "yes or no" answer, but it really is not possible to categorize a complex tool such as this into either the "legal" or "illegal" bins. In the end, the ultimate question is "did you work to the spirit of the rules?" If you're not sure about a particular photo after editing, ask the SC for a review. Just PM one or more of us; look to see who's on line at the time, and allow a day or so for review.
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