Virtual NES is a project were you can play tons of free NES games! Currently, the team is working on Virtual GBX and we might even see Virtual SNES some time!
Also, D-PAD HERO!!!!

Good idea, but the first game I tried is in japanese (Dragon Quest 3). I knew I should have picked up japanese at school instead of german.

Sure, but is it legal or is it simply a case of Nintendo not really bothering to do much about it. Those aren't the same thing, you know.

It's legal, click the "Legal" button on their site.

There are loads of console emulators around, downloading and using them is a piece of cake.
Nothing too special about this really.
I very much doubt this is legal in any way though. Nintendo is drip-feeding new titles into the Wii Virtual Console in order to make lots of cash, they wouldn't want people playing their games for free.
[edit] seems the ESA are on their case, which is why you can't download the games. I expect they may get shut down at some point.

Meh, I'll stick to Visualboy Advance and ZSNES.

The software, of course. Them allowing anonymous internetizens to play commercial games, not so sure.
Now I'm probably just being anal though, disregard me.

I don't know much about the law, so can't say if they're covered or not really.
I'm not against such things though, if it keeps old games alive it's not much of a crime, is it?
One of the reasons I'm on Abandonia.

Well, they made a case, not sure if it is at all legal though. Sure, the emulator portion of it is completely legal, and so is making archival backups, but allowing the general public to use those archival backups is a bit sketchy. That would seem to fall squarely under the definition of "copyright infringement without monetary gain", especially when they are titles that Nintendo is actively marketing. Its a cool idea, but I don't think it will be around for all that much longer.
On a side note, is there any way to set this thing to run in full screen? I've got a PC hooked up to my TV and this would be a great addition to it, for as long as it is around.

EXACTLY. Nintendo is very protective of their (or what they see as their) properties, licensed or not, particularly when there's a profit to be made. They've had NES emulators shut down previously, so it's more a matter of time and someone pointing the site out to their legal department 'til these guys get a cease & desist letter.

Yeah, just skimming through their "legal document", it looks like they are going off the standard rom-site schpiel:
The emulator itself is legal: True, at least for the NES.
It is legal to have a copy of a game you own: Grey area, but I think you are supposed to make it yourself (without bypassing copy protection).
Other Cases: Very dark grey area, and not something you want to hinge your site on.
Their copyrights expired: Yeah, no. That is just really not true in the slightest.
So, all-in-all, you linked to a warez site on GoG. Good job.
Fun facts:
The page saying "If you are going to prosecute us, you aren't allowed to visit our website" used by Torrent Sites might sound legal, but it isn't :p
Something similar in your share for a p2p program: Also not legally binding :p
Cops CAN say "I am not a cop".

I just skimmed through their legal stuff. Sounds impressive but it's really just bunk. For example:
"The original precursor to the NES, the Famicom, which was released by Nintendo Co., Ltd. in Japan in 1983, no longer has any patents that are still valid. That is to say, all of the patents covering the NES have expired."
Wrong. The joypad designed by Gunpei Yokoi is still a valid patent and one Nintendo still use to this very day on the Nintendo DS and Wii. Other than the shoulders and extra buttons it's still exactly the same design crosskey, select, start, B and A.

And don't they use the architecture of the console through emulation on the wii virtual console?