Quote:
If i install this and someone manages to steal my password somehow or hacks the server that my site is on and changes my password then goes and logs into the admin section as me, Then they have free rain in the vbulletin members area to download anything on offer and bog off and pirate it to their hearts content
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No.
The only way anyone can get into the member's area is finding out your customer number and password. This modification never asks for such things, it just loads the member's area inside the admincp iframe.
It's no less secure then going directly to the member's area with your webbrowser.