Friend of mine got into an argument in his guild.

Someone said he had set up a Private Server, his guildies tell him its illegal, he goes on that its not and that as long he uses it for his own pleasure he couldnt get banned.

Just about everyone thought he waqs wrong, bet he kept going on and on about how he had read the terms of use and all the rules and that there is not on private servers and that he is right.

Help me settle this dispute:P

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Too much of anything can make you a addict.

Among other parts of the EULA and TOU, I think Section B iii of the EULA covers this reasonably well:
http://www.wow-europe.com/en/legal/eula.html

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Q u o t e:
B. You agree that you shall not, under any circumstances,...

(iii) host, provide or develop matchmaking services for the Game or intercept, emulate or redirect the communication protocols used by Blizzard Entertainment in any way, including, without limitation, through protocol emulation, tunneling, packet sniffing, modifying or adding components to the Game, use of a utility program or any other techniques now known or hereafter developed, for any purpose, including, but not limited to, unauthorized network play over the Internet, network play utilizing commercial or non-commercial gaming networks or as part of content aggregation networks; or...

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If you find any sites offering such things, report it to Blizzard through a webform and we will make sure it is dealt with.