Distributing complete images is an bad problem of all software, not only for custom distribs, but also for originals and other (PC) software.
As long as everyone creates the image by himself it is legal (assuming tracks are legal; knowing converters are legal). Distributing complete images is definitely illegal and violates Nintendos rights. But it seems, that Nintendo don't work against this: (Nearly) all original images are distributed over well known portals and the portals are alive since years.
Last edited by Wiimm; 01-18-2012 at 12:07 PM.