amsterdam hashish

I thought cannabis was legal in Amsterdam?
I was under the impression that it was legal to buy, sell, grow cannabis in Amsterdam. This article states a guy is in jail for growing weed, in Amsterdam.
http://news.yahoo.com/s/ap/20071220/ap_on_re_eu/netherlands_hashish_cake;_ylt=ArWGp1Qu6oI12jaVfe62pwhvaA8F
Anyone able to shed some light on the law there?
Cannabis is not legal, it is just not acted against if you use or grow small amount.
Often growers of cannabis grow in dangerous circumstances.
As growing more than 5 plants at a time is not allowed (up to 5 plants are ignored, mostly,) the growers have to hide their plant.
Often they get illegal electricity, (to avoid being noticed) and hide the lights. Many of these growing places are fire dangers, smell like high heaven and the growers are often part of gangs or do other illegal activities.
So it is not strange to see a mention of someone being jailed for growing drugs.
By the way, the man in this news clipping is just after being arrested, most likely in the first few days, before the judge is really involved, (as he is still in a police cell.) (After a few hours to 48 hours he will be brought before a judge to extend his stay in a police cell.
Mark Foggo’s Skasters – Hashish From Amsterdam (part1)