A: Yes. The LFS master server records hardware IDs and IP addresses. If you attempt to join a server with a tampered executable, your hardware can be hard-banned from all official servers, including the demo. There is no appeal process.
Some argue that LFS 0.7d is "old" and therefore acceptable to crack. This is legally false. Copyright lasts for the life of the author plus 70 years. Ethically, the game remains for sale on the official website (www.lfs.net). There is no expiration date on paying for software. Lfs 0.7d Unlocker
For those interested in LFS or similar games: A: Yes
The unlocker patches the LFS.exe binary file. It modifies the assembly code that reads the registry for a valid license key. Instead of checking against Scawen’s authentication server, the patched code simply returns a "valid" status regardless of what key is entered. For those interested in LFS or similar games:
If the price is genuinely prohibitive, consider these wholly free (and legal) sim racing titles that offer content on par with or exceeding LFS 0.7d: