Hmmmmm?
I'm very curious here. You mention that the sites that have hosted the 2nd CD textures have all shut down but it sounds like you are speculating somewhat that they went down due to legal issues.
Based on the fact that no official updates have come to pass in years now for UT and the fact that nothing but good could come from people enjoying UT more than usual and spreading the word, I'm tempted to host the textures from the 2nd CD for the S3TC option of the game which as mentioned earlier should only be benificial to those who actually own a copy of the game.
My original CD 1 is cracked and no good but the 2nd CD is perfect still. What exact legal action has been taken against people sharing these particular textures? Don't speculate. Tell me what you know for sure.
Until then, here is the best set of instructions for using the S3TC textures from the 2nd CD. I made these myself and I still have a 100% record of happy direction followers with this set of instructions. Here is a link to the thread that has what you want not including the actual textures:
http://forums.beyondunreal.com/showthread.php?t=169643
All I can say at this point is to follow the directions perfectly and you will enjoy your S3TC Textures (2nd CD Textures, High Resolution Textures) on the first try!
There is also a how to manual on my forum at
www.Hermskii.com. It will answer many of your tweaking questions there and has a downloadable manual. I have not updated this S3TC section that I give you here (link above) yet to my manual. Maybe I'll do that now...