Couple of things:
1) About "legal vs. illegal": spirit of the law vs. letter of the law. It's illegal to take the tags off your bed mattress. That's letter of the law. No one's been arrested for it. That's sprit of the law. Posting screencaps, as I do on my site, is illegal (letter of the law) and is nonetheless permitted on thousands of sites across the internet by Lucasfilm (spirit of the law). As for the "backup" legality, etc., I'm not eager to spout more ignorant ramblings on the topic, so I'll leave that to a lawyer if the occaision arises.
2) Calling me a rambling ignoramus is a personal insult.
3) Based on the thousands of emails I've gotten since opening the site, it appears starwarslegacy.com is inspiring discussion, passion, and reverence for the OT. Just as this site does. That's reason enough to document the effort, irrespective of any distribution.
4) Lucasfilm is watching the site, too. You're just going to have to trust me on this.
5) This thread has quickly devolved into a discussion of topics peripheral to the restoration itself, and that's fine, but there isn't really any reason for me to follow it. I have expressed my hesitance to hijack any of Jay's resources, but I'll talk to him about starting a new thread.
_Mike