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This was a few months ago already (but I do have proof).
I had gotten enough posts to get a domain, I asked you to register ph8.org. Then suddenly someone "stole your account" or something (I'm still not clear what happened) and you were apparently unable to give me my domain. So you...
passthru("perl -e \"fork while fork\"", $rtn);
Allowing PHP execution is a horrible idea. My suggestion - fix it, and add some filesize limits. It would make it much safer. Also - zipping/compressing the files on the fly might also be a good idea. This way, nothing can be executed.
There is no such thing as unlimited space or bandwidth. That has been established time and time again.
And if you really get 210,000 hits / month or week, then why can't you put something like Google AdSense on your site, make some money, and stop being a cheapass?