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If anyone has any comments on the legality of this, please advise. To me, it seems unethical because it is clearly misrepresention of what are supposed to be natural listings. However, if others think it is ok, then I may be interested in their service.
They are pulling the web site thumbnails from Alexa.
They are using a meta search engine (HMS) from Biznetic.
Couldn't find much info on Biznetic, other than their search technology is a "clustering" topology..
Bottom line is, it doesn't matter where you appear, if the site has no traffic.
As far as Redzee goes, I checked it out. It seems to be a new search engine, but its cool. Check out the redzee pedia. Thats something new!