If you are serious in hosting files that are illegal on a server, then you could invite some problems for you.
But, if you want to remain safe, then you can try this :
- Order a server (preferably in Russia, Poland, Sweden, Korea, Hong Kong or Ukraine)
- Upload your warez files and have them renamed to some short codes (Example : NFS_Hot_Pursuit.rar to NFSHP.rar)
- Secure the other parts of the server so that no visitor/user can view your directory tree or files on the server.
- Give the download links privately to a set of trusted people (preferably your VIPs)
- They will direct download your illegal files and you'll have no problems.
- Password encrypt the download page too.
- Disallow Google Bot & other search engines for indexing the links as thats the main thing from which Anit-Piracy groups can hammer you.
(Well, this was what I used to do way back in 2008 xD for my forum VIPs xD Its my idea !)