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The suggestion is that you let people know if the lot was shrunk. Full disclosure, you know. Remember, this is functionality which EA never intended, written by a human being with incomplete knowledge of the internal data formats.
During the development phase, there was a test version of the LotAdjuster which allowed walls to be right on the edge of the lot. However, we found that this wasn't safe and the test version of the program was removed. These lots could not corrupt your neighborhood. Since it was (clearly documented as) a test version, no one should be sharing lots made with that version. Of course, there's no way to ensure that people do the right thing.
After further testing and development, we found that walls which are perpendicular to the edge were safe, but walls which were diagonal to the edge or which ran along the edge of the lot were unsafe. Therefore, the release version of the program was re-coded to disallow unsafe walls.
There is one known bug with walls perpendicular to the edge on a MAC. This problem is documented in the Elsewhere neighborhood thread, and in the Known Issues link in the LotAdjuster download thread:
http://www.modthesims.info/showpost...80&postcount=47