Are there problems, legal issues with having a site that links to copyrighted material on RS.com? Movies and DVDs primarily. Should the domain registered be done byproxy and private registration if so. Is there a problem if the domain whois information isnt private?
Yes, if you are in Australia it is outright illegal to link to copyrighted material that are being distributed illegally. In the US you can be held liable for contributory infringement. Using private registration would not provide any protection, since your registrar will be forced to provide the information to authorities if they obtain a court order.
So how do sites like projectw stay alive? They link to hundreds of thousands of links of RS. Or rapidsharelink sites?
Most of them most probably are flying under the radar at this stage. There is no guarantee that you will get into legal issues if you do something similar. The possibility is always there. It's up to you to decide if you want to run the risk and fight the legal battles you could possibly face. The fact that those sites exist and haven't been taken down/sued, doesn't make them legal, nor does it mean that they won't be facing issues in the future.