I think the law bit was more directed at them stealing other people's work for use in the XP patch without crediting them. I have not checked if they corrected this tiny "detail", but if you see their install file mentioning jedwin for finding and fixing the chocobo crash well then I guess that's a start. Seems they were more interested in making a fancy installation program for it and even hacking the executable files' text strings to make the patch look official. Last time we checked, the actual new FF7.exe and ff7config.exe were actually just the normal 1.02 version + chocobo patch + replaced "Final Fantasy VII v1.02" text with "Final Fantasy VII XP". The patch's most nasty trait was silently replacing system files though, essentially altering all forms of MIDI playback (not just FF7).
Not informing the user of such a severe alteration (restoring the file is not trivial) is a little bit like offering an easy procedure to make tiny cars more comfortable to sit in, without mentioning that it involves chopping off your feet. Again, if this has changed we will reexamine the patch to see if it warrants something other than a warning. They were pretty thorough in manually spreading the patch through various distribution sites (again, making it look official), so there'll be a lot of copies of the infamous XP patch floating around regardless. Thus our recommendation will still be not to use the XP patch unless you are okay with it irrevocably altering your system. All the compatibility effects on FF7 are achievable with standalone patches (credit where credit is due), but you yourself should make the choice about replacing gm.dls.
