Again, this is 100% legal. This application nor "Horizon" is writing anything to your HDD/USB or to the File. I can understand the thoughts about...
Ive just seen the Pingback on my Blog and thought I would join the discussion ;-) Maybe you should wait with the new Tutorial, there are a few...
Nice to see my Tool on a Halo Site ;-) About the "legal issue": First, its YOUR 360 which generated files YOU own. You can do whatevery you want...