It's good to see that so many of you are interested in the legal issues. It's very important as other websites have already been closed or warned. If I recall correctly e.g. CloneClinic has been shutdown by the UK authorities because it was not moderating according to the UK laws. We are extremely concerned about copyright laws that are being adopted in e.g. Europe and therefor we did a project together with Elby: http://www.euro-copyrights.org.
CD Freaks is located in the Netherlands (both servers and the management) and the Dutch law applies. On Euro-Copyrights.org you can find that according to the Dutch law you are allowed to create a private backup and there is no real legal stance on bypassing copyprotections over here. The law does say that removing the protection/cracking is illegal but on bypassing it there is no real decision made (yet). Mind you, this information is gathered by the Computer Law department of the University of Amsterdam and not made up by us or Elby.
We also feel that any device/software that can be used for legal or illegal practices which is not against the law (KaZaa is decided legal here), should be given the benefit of the doubt as over here you're still not guilty till proven otherwise. However if you already tell us that you've downloaded something we can hardly believe that you go trough all difficulties to download a game while you own the original.
Mind you, our rules are governed by humans and humans can see things differently. So it can happen that one post is considered legal by one moderator while another moderator might have some doubt and close/delete it. Some things are simply on the egde and in many times our staff will take the safest decision. It's not only to protect ourselves but also you. It would theoratically be possible that we have to give your IP address to the authorities.
Therefor never mention that you did something illegal (or make it reasonably obvious) and we won't assume it. It might sound hypocrite to you but it's how the legal system works.