hid’s kits legal?

In Australia they are not legal. Nor are many other conversions - not that that stops people. Whilst using LEDs instead of OEM etc is technically illegal, I don't think that's a big problem. However, people fitting HIDs & "blue" bulbs etc are. Unfortunately our gun laws are fairly strict in Aus so we tend to ram them instead - but then we lose our insurance no-claim bonus etc. Some people throw bricks etc as they pass, but that can also fall under the firearms act so IMO they may as well get a gun - then they can accurately hit their targets (lamps) or target (driver). It's not illegal to sell HIDs, overpowered bulbs or LEDs etc. But it is illegal to use them on public roads.

In order for the HID's to work properly you need to retrofit HID projector lenses into the stock housing, otherwise as you have already noticed you will blind oncomming drivers becuase there is no cutoff in a standard bulb housing including Xenon projector housings. Aftermarket retrofit kits are around 300 for a good set.

I did reply earlier to thank bihili for the link, but that reply disappeared, so to paraphrase etc... Whilst I know nothing of Daniel Stern (the link...), it covers an important aspect of light conversions - incompatible optics. My recent skimming of the Australian suggests that even LED replacements are illegal for that reason. However I doubt the Police would get that finicky, but insurance might (claiming the LEDs are too directional, or were washed out etc). I think too that HIDs usually have auto-levelling circuitry, though I presume that is load or suspension based (ie, parallel to the road)!