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Submission Ethics of proxy servers

Mav writes: "I was recently asked to host a website for free in return for a lot of advertising. After querying them about how they knew the site would produce traffic they stated the site was going to be running PHPProxy (an open source web proxy). The traffic was a result of him and his contacts (nearly one thousand of them) using the site to bypass his school's firewall in order to view their MySpace pages and get access to their MSN messengers. Given all the attention social networking sites have recently received and the various laws attempting to block or control access to them I feel guilty and unsure making this available. Are there legal implications that I need to worry about? Could I be held liable if one of the students got in trouble? Most importantly, what's the moral thing to do?"

"I may be synthetic, but I'm not stupid" -- the artificial person, from _Aliens_