Anyone who pays for a episode that is free online is a fool. Where the illegal stuff happens is at some Star Trek Conventions (especially outside the U.S.) where people make DVD's of P2 and other fan films and try to sell them to fans at conventions. This especially prevalent in countries that have slow internet speeds make watching online almost impossible. This is a practice that has been unfortunately going on for several years.
Well I have been attending FedCon, and numerous other conventions in Europe, for many years and always actively look for dealers trying to sell our episodes. I have yet to find anybody doing so, although I know this has happened in the USA.
I have been running a website about the FedCon convention for many years. It can be seen here: http://www.trekcon.de