What exactly is the deal with Innerspace? It seems like it sort of Virtualizes the game (encapsulates it with its own code and fools it into thinking it is running on a normal system when in fact it is being commanded by scripts?) and allows you to basically bot / multibox that way? I know the original author had a lot to do with EqWindows / WinEQ 2 and all of those type of programs.

Innerspace:
http://www.lavishsoft.com/innerspace/index.php

WinEq2 (also works for WoW)
http://www.lavishsoft.com/wineq2/

Not exactly sure about either ones legality (potential to violate the EULA) - it seems that Innerspace is most likely illegal given the entire point of it (I think) is to script and bot but I don't want to jump to any conclusions given that I have never explored it or even really figured out what EXACTLY it is for.

WinEq2 I don't like because it is subscription based and that sucks. plus it sends a lot of data back to the author - something I also don't like. The functions are neat and all but I have never heard if Bliz has any issues with it or not. I know that a lot of players used it for DAoC and EQ though and its use is rather limited to window management and helping multiboxing.