Yes, it's safe. The dev team put in some anti-cheat code that, by it's very nature (it's code that watches for things outside EQ) looks like a virus to virus scanners (because viruses often try to affect code outside of the code they've infected). But the key phrase there is "looks like"; if it was a real virus this forum would be full of thousands of people yelling at Nilbog
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*EDIT*
Or
maybe Nilbog is just playing the long game, and he wants us all to think it's benign so that someday he can take over all our computers. I doubt it, but it's possible: that's just the risk you have to take to play 100% free awesome classic EQ.