ffs, thats the second post ive lost now, so im making this one short.
1. Running official files is theft and is illegal, regardless of profitability from them. Just like stealing bread is illegal even if you dont intend to sell it.
2. Emulators are illegal. I cant make a copy of a Dyson hoover and sell it as my own.
Example 1 is a Criminal case, Example 2 is a Civil case. You want to get a Criminal case, because that would result in a small fine, or a warning, or at worse a Suspended Jail Sentence - Which basically means "Dont run an illegal server again for the next x months or you go to jail". Civil cases are money cases, i have no idea of your estimated liability, because this would be the first case of its kind.
What i can say is the second they throw in the "intellectual property" card, the ball goes into you court, and the whole thing slides on your favour. Just remind them that in the event they LOST an intellectual property theft case, the likely ruling will be that all items ingame, including characters, gold, etc will become of Monetary Value, resulting in lawsuits over hacked accounts, items being lost in rewinds, and whatever else people want. Thus crippling their company and the game itself, and worst case, the entire MMORPG industry will be ****ed over and have to close.
If the issue just over images, videos, and links on the website say its a fansite or something, if it goes a bit deeper, change your site, host files on an external link site and link to them, and post some disclaimers (most are worthless but they dont always know that).
Finally, if you decide to take this further with them, make sure you read up a lot of information, get some decent facts and statistics together, point out thing thing about intellectual property, and make sure you spell and punctuate correctly. If they think theyre up against someone with some decent knowledge and understanding, they might back off and go for someone else. If you e-mail and say "lol iam runnin an emu u cant sew me LOZL" then they will tear you to shreds in seconds.
(note saying your an idiot or something, and in know you wouldnt say that link i qouted, but you do need to make sure you have a fair level of understanding)
Goodluck.