Basically, all this legal stuff says:
1. LFNetwork is the owner of the site and you cannot copy the site
3. LFnetwork is not responsible for errors in or omissions from the information on the site. There's no guarantee that there will be no interruptions in the access to the site.
4. You cannot post content that (a) infringes on the copyright or any other rights of any person; (b) reveals trade secrets or any information which you have agreed, expressly or by implication, to keep confidential; (c) includes sexually explicit images, depictions, or content; (d) is obscene, indecent, defamatory, abusive, or otherwise unlawful; (v) contains a virus or any other potentially damaging content; (e) constitutes harassment or stalking [...]
5. You made the mods and if any other party is involved, you have the proper authorization to submit the mods.
6. You won't ask LFnetwork to pay you, and you give LFNetwork the permission to use the submitted material.
7. The submission of mods has to be made by a private individual for personal entertainment and not for any commercial purpose.
8. Do not submit material and ideas directly to LucasArts or it will be discarted. Submit only through LucasFiles.
9. You recognize that your mods are in whole or in part derived from Star Wars or other stuff made by LucasArts/LucasFilms and that you have no right, title or interest in and to anything contained in or derived from such material. (They are just protecting what belongs to them and telling you that you don't own StarWars).
11. What happens if LFNetwork gets into trouble because of the crap you posted. If LF gets sued because of you, you will be responsible.
12. If someone else steals your mods or part of your mods or ideas you won't sue LF Network or LucasArts or ask them to go after the person.
There's really nothing special about it. Simply that it was written by lawyers * instead of an individual with no legal background. The result is that it is much more painful to read but the terms are similar to what we find elsewhere.
* Contrary to some common belief, lawyers are not Sith...at least not all of them :xp:
Edit: here is the LucasArts press release:
http://www.lucasarts.com/press/releases/61.html)