The file are modified not created. If the copyright in NPC isnt marked first SQUARESOFT and then whatever you want, is illegal!! Because you didnt ask for permission to modified a Square type file. First!
Second! Not all model are created from 0. More then 50% of the models or even more are original and many others are just a little altered, so it means that char.lgp is full of Square parts! Even a single character as the copyright, keep in mind this! (I am italian and i havent problems, we cant sell this, but you americans cant put that on the internet at all)
Third! If you create your own animation, with your own model (it means no Sephiroth, no Cloud, no Square type civilians, ecc.) well, that is ok because is your work.
The meaning of all this, is just to say, that you can distribute all char.lgp, world_us.lgp on the internet without problems, same for Kingdom hearts type model or your own creation, just put Squaresoft on the project and is done. Because if Square did nothing, is because for them is allright because your putting the attention to them publicizing their name
Youre doing them a favor.
So enough to read legal thing there legal thing hear. Is just an excuse, nothing more. If you were doing something illegal this site, was closed before you could say "damn!" And trust me, i know better then you think what i'm sayng.
And leave the "Yaz0r" thing out of the way, that was a different thing.
This isn't a criticism, so dont misunderstand, is just an explanation of the reality. Anyway you can do what you want.