I thought the Raufoss was a Green/White tip?
Anyhow, the consensus on the Biggerhammer board was that it is not illegal to own (the explosive charge is too small to qualify for ATF regs), but that the rounds themselves are probably stolen USGI stuff, as there are no civilian sales, and certainly no surplus on the stuff.
$35 is actually pretty low for the Raufoss round--generally, they go for much more.
One thing to point out--there are people out there who will paint ball ammo with the Red or White and Green tip and sell it as Raufoss. If you are in the market for the rounds, you should probably familarize yourself with the correct head stamp, and if you possibly can, X-ray the bullet to make sure it has the proper construction.
Edited to add--if Famous Spuds is selling the stuff, I would have no doubt as to it's legality or authenticity.