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Originally Posted by Double L
I was under the impression that was why SE's needed to frame the thumbnails for image searches but I now noticed you just hotlink the image from google and send them straight to the site w/o a preview.... Im not a lawyer so Ill just shut up about all that
I think it could a great tool setup with your own database/SE results with your own content of course.... Whatever you have planned for it I like the idea of it all still 
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google is based in usa , that server is based in lithuania
But more to the point , basicallyt se's get around most of those rules merely by the fact its impossible to predict what your going to search for
Thumbnails are considered fair game. the big images are displayed in a windows media playlist file much like a bookmark thus its created and destroyed on the fly.