The best legal places (free and not) to watch TV shows and movies on internet

• Hulu

This is the best free site. You will find lots if recent episodes of your favorite shows. The availibility depends on the show. Some older shows may have all the episodes availiable, but recent and popular ones usually have few recent ones (5-10). The list of episodes may rotate, so that you will be able to see the whole line.
There are also, quite a few movies availiable. But don't expect the recent ones.

• Network websites:

Networks usually publish their recent TV show episodes on their websites.

http://abc.go.com/watch
http://www.cbs.com/video/
http://www.nbc.com/video/library/full-episodes/
http://www.syfy.com/rewind/
http://www.cwtv.com/cw-video/

• Netflix

Hands down,the best place to watch Movies. For only $8 you are getting pretty much all the movies you can think about in a great quality.
Has shows, avaliable for internet streaming, too. But you can't really find recent episodes here. Also, some older seasons may be availiable only on DVD.

• Hulu Plus

The best paid streaming service after netflix. Has less movies, but most of the recent TV episodes. Costs $10. Not all tenworks make their shows availiable here. You still have to watch ads.

• Amazon prime Instant video

Costs $79 for a year or $4 for 48-hours rental. Has less titles then netflix.

• Blockbuster on demand

A new player in town. The selection is not that great yet.