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Actually, this is exactly what the hack does. It allows every person on a site running this to create their own sub-community with a unique look and feel, control over their members, multiple forums and so forth.
It is a lot more than simply creating a forum on an installation.
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Hmm, that certainly shifts my judgement.
Your vBulletin license is applicable to one installation of vBulletin under
your identity, and if you're allowing others to replicate your vBulletin under their name, it violates the policy of having a vBulletin without having a license. If you say the user is using your license, then that violates the rule where the installed vBulletin pertains to only the purchaser of the license.
Those of you with complaints of how having multiple administrators is in violation to the license--well, it isn't, because there is only 1 vBulletin in question there. When you create more than 1 vBulletin with unlicensed administrators, then things are in obvious concern.
The main argument provided against Jelsoft seems to be that this hack doesn't cross any boundaries, and isn't a "whole" vBulletin, but simply utilizies a portion.
To what significance is this portion in regard to vBulletin as a whole?
Well, this hack clearly seems to perform the principle feature of vBulletin--a system for creating and managing forums.
In this affect it goes against the license.