You don't need any "legal OS" to run these. These games were dumped from a PROTECTED HD not meant to be used with everyone's PC. It still boils down to needing the pirated games to use this loader. At least you changed the link to something informative.
Type X2 is a windows based arcade system. Most of the latest games use it (KOF13,Blazblue, SSF4AE). The loader allows the user to run the software on a regular pc by bypassing the protection on the arcade software. You can consider the loader to be a crack of sorts.
I guess it's fine to post the loader but that isn't exactly legal either because the arcade software itself isn't a consumer product unlike the Wii emulator that allows people to use their own games. An arcade software kit costs operators thousands of USD because of the limited amount of units produced.
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The list of restrictions: The following restrictions are placed on all Trial Accounts: - A level cap of 20. - A maximum of 10 gold. - Trade skills are capped at 100 ranks. - Inability to trade via the auction house, mailbox, or player-to-player. - In-Game public chat channels will be unavailable. (Players will still be able to communicate using say, party, or whispers). - Characters will be unable to create or join existing guilds. - Accounts will no longer be able to whisper other players unless they have been added to those players' friends lists or have received a whisper from them first. - Characters will not be able to invite, or join parties with other players above level 20. - Voice Chat is disabled on trial accounts. - Realms with login queues will give priority to customers with retail accounts. - Will not be eligible for any Character Transfer service.