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Well, I don't want to sound like a do-gooder and believe me, I'm not. Avoid starting a warez site.
Firstly, you ask for a host suggestion. I haven't come across a host that allows you to put illegal content on their servers. Think about it, they are the ones that can get sued for having the content. So if the host finds out that you've put illegal content on their servers, you will get banned or possibly a warning.
But maybe you are not going to host the content, just have links. That is sort of legal, but if you are giving people whole files, say an actual movie or an album etc, that is considered more against the law. Streaming a music video can be done through youtube, so you can listen to it. But youtube doesn't give you the source file. That makes a huge difference with companies looking to stop these sites.
So I don't think you will find a decent host which allows that sort of stuff.
Secondly and most importantly, warez sites don't do as well as legal sites. Again, just have a think, the biggest directory (DMOZ), doesn't allow illegal sites to be in the directory. So you will not be able to promote your site as well as other sites. People generally will avoid warez sites and opt for iTunes.
So I suggest have another idea to make a site on.
I admit, I did think about making a warez site, but I soon realised how wrong I was. I am now making a legal site as people can stream and watch movies and listen to music. This uses loopholes to be legal as people won't be able to download a high quality version, just average. So clearly, the experience of free websites isn't as good as iTunes, but what do you expect for free. Have a look at alluc and other good sites in that area. You'll understand what allows them to run without companies actually doing anything.
Good luck and DO THINK HARD!
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