http://answers.yahoo.com/question/index?qid=20110113095137AAuNefj
References the law at the link.
In a nutshell, it is illegal to import, manufacture, export, etc. It is NOT illegal to own, buy,sell, or shoot it.
I have a couple of AP bandoliers for the Garand. You can buy surplus in many places online.
It seems to be that part about being illegal to manufacture AP is behind the ATFs action against Barnes copper bullets.