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Drupal Hosting : Need opinions on the hosting policy

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This is a drupal question asked by DrupalValueHosting on 27 November 2007

We have been debating on allowing legally allowed adult content on our hosting infrastructure.
The main issue being: The adult content may be legal at one place but may not be legal in other countries

As of now the Terms of Service allows keeping adult content which is legal in the States.
(we own our hosting racks of servers + long term leased infrastructure in a premium data center at Dallas, so no upstream constraint for this policy)

Is there anything we need to be concerned about? Please share your comments or any experience in such situations.

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