I heard that some people have been arrested and charged with "transmitting money without a license" for selling Bitcoins.
Does this mean it is illegal for me to sell my Bitcoins?
Depends mostly on your country, some countries dont have any rules, some completely block it, also in some countries you need to pay tax about it.
True. It really depends on one's country that he is living in. Countries that banned or blocked it might not really be interested or did not studies bitcoin's potential. Since the government would not really benefit from it then there is no reason for these countries to allow bitcoin in their country. Fortunately bitcoin is allowed in my country and I can have my extra income through this.