I viewed the site. Right at the bottom was a link to a site whose tagline is, and I quote, "Watch movies online free."
I clicked that site to review its contents to make sure you were in line with the TOS. Very quickly I noticed that virtually all of the movie links on that site are coming from rapidshare, megavideo, and other known copyright infringing file hosting services.
You're saying it's a site directory, and that's very true. The problem comes when you start linking to websites that don't have an ounce of legal material in them, which is what that very first link that I checked was - a site with more illegal links than I can count, and which actively encourages the viewing of illegally obtained movies.
That's why this is a permanent suspension, and why we cannot remove the suspension or provide further access to the account for any reason.
Edit: Addon: According to what I can find about the legality of this on the internet as well, it's coming back as this: Knowingly linking to a third party who has copyright infringing copies of [insert chosen copyright infringement type here, in this case movies] results in liability for Contributory Copyright Infringement. As the TOS makes it clear we can't be violating US Federal, State, and/or Local laws, this causes a problem as it'd also fall under Copyright Infringement -while- being illegal, so it gets suspended.