the second law of thermodynamics states that energy that is harnessed in an engine will tend to be lost through radiation. it doesn't say anything about matter getting degraded, although that effect may be related.
another thing is these "laws" of thermodynamics are made up by humans. [edit: I should have said "made up by humans to fit the evidence" or some such. obviously they werent made up ad hoc for no reason.] they don't strictly have to be true. [edit: by true I meant universally true. they are of course true in the circumstances we normally observe, or we wouldn't be still calling them laws.] we just believe them to be true because we (living as we do on a planet's suface) have no examples of the converse. the idea most evolutionists have is that the universe started as a point of completely dense energy, and everything since then is less and less dense exactly as the second law requires. that doesn't mean the supply of energy is necessarily finite, it could be coming from black holes or something.
it's easy for a preacher like ken ham or kent hovind to use these as examples of why "evolution can't be true," but for a scientist these aren't proof at all. it's also easy for a preacher to claim that God is the only alternative but a scientist has no way to be sure of that.