Joe. if, as you say, they are illegal (let's go with your scenario for now)

Why has eBay got a specific category to sell them????

http://www.ebay.com.au/sch/i.html?_from=R40&_trksid=m570.l1313.TR10.TRC0.A0.H0.Xe+cigarettes.TRS0&_nkw=e+cigarettes&_sacat=0

What's your theory on that one? mmmmmmmmmmmmmmmmmmmmmm??

And yes, you can 'smoke' them anywhere because there is no 'smoke' expelled