Morality aside, you were incorrect in thinking that it's illegal to infringe copyright no matter where in the world you are. There are countries which do not have copyright laws. There is no internationally recongised copyright law which every country on Earth abides by.
Thats bullshit I live in holland we have http://www.anti-piracy.nl/english/english.asp Holland is not offshore. The only thing tha is allowed is that we can download movies and music without geting into trouble. But not uploading.
Well this has turned out to be a great debate well i have a warez forum located in the UK but in only provides links, might consider moving it to one of our asian servers. As mentioned earlier shinjuru is a good host for these sites but, they are slow, sometimes very slow, they do however have 5 datacenters and will move your server if your are experincing problems (provided you have a dedicated server). However wether there be a moral to this story or not, fact is if you want to host content or provide half bent services then maylasia is the way. Thats my opinion