Well, IANAL, but it looks like this game breaches copyright left, right and centre... saying it is fan fiction and freeware and putting copyright notices in it doesn't mean you can use other people's work in your own... that's what copyright is for. Unless of course you are one of the original authors. If you are not, then you're breaking copyright law and Rapidshare's terms and conditions.
Anyway, aside from that, the bug is still not fixed. I looked at Wally, and it said "A pair of matches" (?). I went to pick him/them up and it crashed with the error mentioned above. When are we likely to see a working version?