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Ethical obligations of a college and students using its servers

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What is the ethical obligation of the college/and or students in the following situations?

Each student has a personally owned computer which is hooked up to the college servers. The students are required to pay a technology fee each semester.

An outside hacker links to a student's computer and uses the computer as a server to distribute movies. The student is unaware of the compromise to his computer. The college becomes aware of the situation when the computer actively used 1/3 of the bandwidth available at the college thus causing slow downs in the system and costing the college money.
2) A student illegally downloads music and videos. The student has no intention of selling the material but nonetheless is breaking the law.

Should the student{s} be punished in any way?
What is the ethical responsibility of the student? Of the college? Of the parents?
Is it possible to make good decisions without thinking critically?

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This solution is comprised of a detailed explanation to answer ethical obligation of the college/and or students for many situations of more than 300 words of text.

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Should the student{s} be punished in any way?

The student should not be punished in any way. This is due to the fact that the harm has been caused by an outside hacker, who links to a student's computer and uses the computer as a server to distribute movies, and that the student is unaware that his computer is being hacked.

What is the ethical responsibility of the student? of the college? of the parents?

The student and the parents should be more aware and check the personally owned computer more often to protect any further similar problem. For the college, it is also their ...

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