Ferrets aren't legal to own in many states, so I imagine they aren't legal to hunt with in many either.
I've never heard of it, but it doesn't surprise me. They can be trained and seem to have loyal attachments to the people that care for them. They would be good to get into rabbit holes. I know dachshunds, another long slinky animal, were used to hunt out burrow dwellers, so ferrets wouldn't be too far fetched.
It is so odd that you posted this today. This morning my dad started talking about how people used to do this when he was a kid. He said they would tied a thin rope to the ferret and put it down the rabbit hole while someone else wait by the exit hole.
I have no idea if it is legal or not. I am not exactly a hunting kind of girl.
Yep. It is really an awesome thing to watch... you train them with collars and such in case they get stuck in the ground so you can dig them out... You can watch it on YouTube. I could always do it and not get caught...