I'm using a DNS service from unblock-us.com to access BBC iPlayer.
We have wireless network at work, and my question is whether it is possible for my boss to see if my iPod is using the dns service?
System administrators will be able to monitor any packet which goes over a network under their control, so yes, they can in theory see that someone is making requests to a given server, and probably trace that someone back to you by correlating it with other requests. Mind that I'm only talking technical aspects here, I don't know about the legal aspects.