IE6 does not support transparent backgrounds in images, instead it seems to choose a random colour to display instead. That is what's happening to you.
To fix it you should try upgrading to IE7 or IE8, or switch to Firefox.
We do not have that much storage (I'm not sure of the exact figure). However most of the account that will be deleted are using none to only a couple of MBs of space.
Yes, Flash intros are allowed.
When I go to http://www.warsworld.exofire.net/Movie1.swf I get a "404 - Not Found" error, this suggests that you have typed the file name wrong, or uploaded the file into the wrong place.
Do not use http://status.x10hosting.com as it has not been updated since the server changes so does not work.
I am currently updating my Server Status checker http://x10staff.co.cc/status (I should be done within an hour). My status checker is more reliable, however it is still wrong sometimes...
allofus does have root access as it is his VPS.
Brandon would be the person to ask about this as he is the most familiar with the VPS system. Even though the VPS service is unmanaged I don't think he would mind toomuch giving you a few pointers.
Allofus, I will try and point Brandon towards...