http://community.secondlife.com/t5/English-Knowledge-Base/Linden-Realms-Frequently-Asked-Questions/ta-p/1057471
"You will be teleported automatically out of Linden Realms if you perform an action not intended to occur within the experience. Linden Realms requires the Linden Realms HUD, along with flight and teleport being disabled. If the HUD is detached, or if your avatar manages to teleport or fly within Linden Realms, the region will automatically teleport you to your home. This is done to ensure that the Linden Realms experience continues to operate within the intended design."
"How do I report griefing/camping/cheating?
Linden Realms is subject to the same rules, regulations, and guidelines as the rest of Second Life. In the Second Life Viewer, choose Help > Report Abuse to report abuse."
I think that the scripts used by cheater far exceed the intended rules against teleport or flight, in addition many of the scripted cheaters tend to camp for hours, possibly using bots for it too. Just like griefing this is an other negative for SL for attracting new users.
2 or 3 people with the same tools in the same sim would make it all most useless to even try to use them any more. I hope Linden Realms doesn't get closed down, It's really the only way for new residents to get some spending L$ , the idea of giving out the cheat tool is hoping that LL would finally do some thing about it. It's very clear from Rodvicks comments, that one of the biggest problems SL faces is keeping new residents. Every RL friend that I've tried to get in to SL left due to greifing, getting tired of that...