I think in this context, "living legally" means you are not Out-of-status by overstaying an I-94, issued to you by the USCIS (fka INS) officer at the point of e

I think in this context, "living legally" means you are not Out-of-status by overstaying an I-94, issued to you by the USCIS (fka INS) officer at the point of entry. IANAL.