So how hard is it to actually make a game for the iphone? I'm sure it depends on what type of game your making, etc... but is there any legal stuff involved? What type of coding? etc etc
To be honest, if you're asking how hard it is, then you're going to find it very hard. I'm not being obtuse here, but developing anything of any worth on any platform is very involved. The iPhone is no different in that respect, plus it uses a language (Objective-C) that's rather different to other programming languages you may have used before (although wonderful once you "get it")
I've googled for tutorials but cant really find anythign useful. Maybe you guys can shoot some links my way or help me out.
Try
http://www.iphonedevsdk.com/ as that has a whole heap of information on development and a very helpful community. There's also an iPhone/iPod Touch programming forum here on macrumors.com
is there a limit to how big something can be? and can make games that allow you to play with multi people around the world via a connecting to a server?
This really depends on what you mean by "big". If you mean in terms of total app size then there is a limit, but it's huge (something in the gb order if I remember correctly.) If you mean memory footprint then there are quite stringent limits due to the nature of the device and mastering memory management is of great importance on this device.
As for multi-player, yes this is possible but requires the development of your own game protocol (or leveraging protocols already available) and managing the hardware for the service. You also need to think about how you pay for that hardware service on an on-going basis, especially if your game is completely based around it.
Start small, learn the SDK, use the Apple documentation. Don't expect to rush straight into writing a game - that's not going to happen.