Same concept as Rapidshare. What legal troubles might I face. I mean I will be deleting all the reported and "illegal" links. Can I get in trouble?
Depends how big you get. If you follow DCMA then you will probably be OK for a while, but if you get really big like rapidshare, they go after you even if you follow dcma.
If you mean millions in fines and the threat of going to prison like Rapidshare's management, then yes, you can get in trouble.