Of course there are no legal problems with the upload method of sharing code. It's just less convenient for you and for people who want to try it out / contribute back.
The next bit, hopefully you won't read it as 'pushy' - do it in your own time, obviously, but this might be a good crash course to it. I'll probably add it to the wiki.
SubversionThe real benefits come later on in a project when you want to know why you made a particular change or revert back to an older version because you lead yourself down a blind alley. Or you want to develop on 2 different machines but stay in sync etc.
Are you using Eclipse? It has subversion built in, as do most popular IDEs. Otherwise you can download a graphical SVN client e.g. Tortoise SVN for Windows.
There's plenty of beginners guides out there.
The principle is you have an online repository, and your offline workspace. You work in the workspace, add/remove/edit files, then commit to the online repository that everybody can sync up with.
Crash course:
Check out a working directory from an online repository:- {l Code}: {l Select All Code}
# svn co http://url.to/project localdirname
# cd localdirname
Add, delete, rename a file:- {l Code}: {l Select All Code}
# svn add mynewfile.png
# svn rm oldfile.txt
# svn mv wrongname.foo rightname.bar
Just edit existing files, no commands required.
Changes done! Commit all changes or just specific files/subdirs - replace the wildcard:- {l Code}: {l Select All Code}
# svn ci * -m "Committing everything"
LicensingI wouldn't worry too much about what license you choose. Here's a brief guide:
Do you not care however your code is used, absolutely no limits? Public domain.
Do you want no influence on what people use your code for but want recognition? Even commercially?
MIT or
BSD.
Do you want your code to always be free as in speech, have access to any changes others make?
GPL.
Or something a bit easier for laymen to understand but likely has a couple of legal loopholes when applied to code?
Creative commons.
For art, creative commons is most popular as it is most straightforward.
, and this has been a huge learning experience for me, so it if it turns out it is a total load of rubbish, please tell me and I can improve it 
thanks for sharing.