You should have checked BEFORE you ran the competition whether or not it was legal. I'm not being funny, but its irresponsible to set up a competition if you don't know the ins and outs of the legalities behind it.
That having been said, for something of the size you were running, it probably wouldnt have made a difference. No one would have done anything about it. You weren't offering huge amounts of money or anything, just a free hosting package that someone could purchse online for about £100 or less. From this point of view, you probably should have just gone through with it and not done it again. By handling it this way, you've unfortunately hacked off quite a few people.
Never mind.
David
__________________My signature sucks.