Issues with file sharing websites - where is the line ?

[iCyborg]

I am having a content website (and growing fast), now I feels as an added feature, I can make the users upload files along with the content (5 Mb attachment at max). I am just wondering is this a good idea ?

The good things about this is -
1. More value to the site
2. will stand out from others
3. More visitors will come and user it

Possible Probelsm -
1. Illegal and copyrighted content getting loaded

I will obviously delete the illegal content/files loaded on the site but still just wondering how good the idea is ? many web 2.0 sites allow file uploading and uses adsense, I don't see any problem with it.

[iCyborg]

I forgot to mention, the purpose of file uploading is to share pdf/doc/ppt and such files, not movies or songs!