Type X2 is a windows based arcade system. Most of the latest games use it (KOF13,Blazblue, SSF4AE). The loader allows the user to run the software on a regular pc by bypassing the protection on the arcade software. You can consider the loader to be a crack of sorts.
I guess it's fine to post the loader but that isn't exactly legal either because the arcade software itself isn't a consumer product unlike the Wii emulator that allows people to use their own games. An arcade software kit costs operators thousands of USD because of the limited amount of units produced.
The "Front end" was written for the purpose of having all the games in one location rather than going to each folder and launching them from the individual folders. The games themselves have not been modified in anyway to run on pc hardware as the Taito Type X2 system is based on Pc hardware and runs on Window Xp (imbeded). Which means that you will still need to run these games using a legal copy of Microsoft OS.
The main purpose of this info (in my opinion) is to demonstrate how excellent PC gaming would be if Game Vendors only had to focus on one specific one Hardware Specs and not have to worry about making their games compatible with the vast majority of random hardware computers out there. Basically the same way the make games for the Xbox and PS3 systems.
This results in no crashes, sticking, slowness. just some of the regular complaints you see from "PC" gamers who are trying to run games on crappy hardware.