Wrong. It was translated by RPG Advocate, not ASCII or Enterbrain themselves. If you didn't pay for it or under the "About" screen it states it was translated by RPG Advocate or some other team, then it's illegal.
The original Japanese version is legal. You can make English games with it, but the editor will be Japanese.
... ...
Maybe you worded it wrong Irock- do you mean NO it's not ILlegal or NO it's not legal?