Okay. Reading this, the SWGEmu is original and the server code may be protected as it's original.
However, anyone who hosts a server and advertises it as "Star Wars" may be subject to getting sued as they don't have the right to use the name or properties, free or not. The source could get in trouble if the databases or server code reference Star Wars characters.
Beyond that, people who connect to it via a SWG game client do NOT own their game client, even if they bought a copy of SWG and are in violation of their license by connecting to SWGEmu.
All free fan works are technically a civil violation against copyright holders in any case. Even if no money is made, the argument can be made that money is lost (ie. people may unsubscribe to SWG) when assigning damages or that hosting costs money or that the purchase of a server represented a profit made by someone off it, And even without damages, it remains something which uses art, assets and properties which no one except LucasArts or a licensed representative has a right to market, even for free.