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  1. "Although this site it hosted in the US, so wouldn't that means it falls outside UK law?"

    Can of worms dear chap.

    You now need to be aware of (and comply with) US law because the US authorities can actually seize your equipment without telling you. There is a very nasty law passed over there called the DMCA which is the bane of many a hoster. A US competitor could ask your provider (via a nicely drafted solictor/lawyer) to pull the plug on your server. And you know what? You can't do anything about it. You have NO legal jurisdiction on US soil.

    Thats why I run my own server (hosted with rackspace at Heathrow), to which they (RS) have no access to the onboard software. The databases are encrypted and replicated to my home server. Now UK law says that if requested by teh authorities I must hand over the encryption keys. Oh gee. I appear to have "forgotton" them. Guess it's jail time for me then.

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