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They had no right to do it. That was the first fan-game I was going to play! I say f*ck them, proceed with the project. What can they do? I don't believe they can sue, because this is not an official release.
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Just one thing I've wondered... How can a company sue an anonymous person? How could VU Games track down the creators of Kings Quest IV when they don't know where they live, what their names are and so on?
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They have every right to have had it shutdown, and they could sue their brains out if they proceeded. Personally, I think it's a waste of time, and they should leave them alone, but if there's an official KQIX coming, then it has to be done.
They can also track them down easily. The website domain name has to be registered with someone and you can find their address and phone number(I think) by doing a WHOIS search.
Plus, hosts keep logs. They could be found very quickly.
EDIT:
I just tried and found addresses and phone numbers for everyone involved:
http://whois.godaddy.com/
