I don't think I would make a stink if I recieved a C&D from GW. Remove the offending material, and that'd be it. And if that weren't enough, take down the site and put up another one for another game. Or something like that.
/M
Yea, exactly. That or put it behind a password wall so that it is just for the campaign's players.
I actually ran into the Paizo IP patrol some time back for doing something very similar - a private web site dedicated to the Rise of the Runelords campaign I was running. I had broken apart the PDF of the first adventure and included some of the artwork plus bits and pieces of background text for the players. It was never intended for public consumption... however, one of my players went and posted a link to it on a forum somewhere and then Google and the like started to crawl through the private site and before I knew it I had a fairly friendly cease and desist letter. It basically amounted to please remove the offending material or put it behind a password so that it is not generally accessible.
I ended up cleaning up the site and learning about what Paizo images were fair game (basically what appeared in their community release download sets or on the various Paizo blogs). In the end it wasn't a big deal at all and I learned to be a bit more careful with someone else's IP on the wide open Internet.