hehe.. I didn't know what purgatory meant at first too.
Regarding file approval, on my site I give "avoid approval" to members who have been with the site for a month and have certain posts counts. So far it's working out fine and no one has abuse the system yet.
Though we do need a report file feature to report things like abuse, broken links, etc. westpointer is working on this I belive. While we are at it, a report comments feature is needed too, especially since people can insert images in comments and there is no way to see recently posted comments at one place.