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After checking out the module building tool I found that it supports a built-in programming language similar to C.

Can anyone confirm how well the module programming language is sandboxed? In particular, what's the risk of a malicious module taking control of the computer through the scripting functionality (because NWN1 has admin rights)?

Scripting functions to watch for in particular would be functions that are able to:
-read/write files outside of the folders that NWN normally uses (install directory, personal configuration and settings, ...)
-run other programs
This question / problem has been solved by Regalsimage
I've literally never seen anyone bring this up as an issue before in over a decade of playing, it's safe.
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DivisionByZero.620: After checking out the module building tool I found that it supports a built-in programming language similar to C.

Can anyone confirm how well the module programming language is sandboxed? In particular, what's the risk of a malicious module taking control of the computer through the scripting functionality (because NWN1 has admin rights)?

Scripting functions to watch for in particular would be functions that are able to:
-read/write files outside of the folders that NWN normally uses (install directory, personal configuration and settings, ...)
-run other programs
Neverwinter scripting can access nothing outside the game.
There is tools to allow doing this for advance modules like nwnx.

Scripts for example poorly written could crash a server though with massive lag...
Or bug for unintended consquestions..

but to actually hack the computer... nah.
Any known risk for third party content (hak) packs?
Even accessing an SQL database is controlled by server-side scripting so that's safe as well.