What's Wrong With Port Scanning?

Sneezer asks: "I work for the department at my university which provides network connectivity for students living in the residence halls. We are currently wrestling with revising our Acceptable Use Policy. We occasionally get complaints from other sysadmins complaining that one of our IPs has port scanned one of their servers. In trying to decide what our policy should be in dealing with residents who play with port scanners, we have come to wonder why so many admins get so uptight about being scanned. Also, could we or should we be held accountable for an intrusion if we were informed that the intruder had been conducting port scans before, but we hadn't intervened?" I feel port-scanning is similar to looking at a house. Looking is OK as long as you don't try to break-in. But as in all things, there is a fine line...the trick is figuring out when it's been crossed.