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I'm TehZ and I'll be here sometimes. I normally play minecraft, but I am a supported of competition and open source (but I won't be an over supporter; I hate m*cr*s*ft who made .net) I try to tell people that before notch changed the TaC, this was completely legal.
What law do you believe this project is breaking? Why do you assume Swedish laws apply outside of Sweden? What was the point of censoring "Microsoft?" Lastly, do you have any clue what you are talking about?
1) None, it's notch who is breaking the law (by changing the TaC), maybe a bit copyright.
2) Copyright is universal.
3) Microsoft = evil.