Well you're in luck. We've spent the past year working on server stability, and it's gotten better via hardware, hosting, and server-specific optimizations. At this point, I'd say the server is very stable. As far as copyright issues, this has been discussed in an article, including interviews. SOE seems apathetic and/or intrigued by it, because we do not charge for anything. Coming from the President of sony, and co-founder of Verant, I take it as a compliment.
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not every private server is vilified. The private EverQuest server known as Project 1999 has been under the watchful eyes of publisher and license-holders at Sony Online Entertainment since before its inception in 2008, but has garnered no more negative reaction than apathy as of this time. A few SOE employees have even noted their approval of the project, since it offers a form of gameplay no longer available for subscribers to the modern evolution of EverQuest.
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In fact, a quote from SOE's President John Smedley nails the point home on how they feel about the efforts of the Project 1999 crew: "Practically, our stance is that I’m amazed that people know how to do that. Typically emulators have a very limited functionality but it really is an amazing technical feat... until those people start charging and ripping us off, then it becomes something else."
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http://www.tentonhammer.com/editorials/private-servers