Thats a very niave viewpoint Xander, you should research it a lot more throughly - you will find that if they decide to go ahead you would be in a lot more trouble than you think. However if your hosts don't check what your running, there shouldn't be a problem from there side - or Shanda which as far as I know, have taken little or no action against hosters/users.
Could read the TOS of your host too. (But like I said, I doubt they'll check or know)
Lastly, your requirements are far too high CPU wise. and maybe too low Memory wise (if its for a lot of players)
/Leo