I am in no way associated with LunarPages, in part or in whole - I'm just a guy that has his site hosted by LunarPages.  

As for your question, when you think about it a lot of files and programs while illegal in one country and not in others.  Some countries are so far behind the times that they never even considered making it illegal to have child pornography, copies of copyrighted software and what not.

LunarPages resides in the United States so I believe you have to follow the laws in place for that country.  If you hosted your site in China, you would have to follow their laws.  Therefore, if you make available Windows XP Pro for download or have a hundred child pornography images for download - that would cause problems for both are illegal in the United States.

Just my 2 cents worth.  LunarPages may have a different take on this but this is what I have learned over the years and my understanding of what I have learned.