Has anyone ever read the GPL license? Linux, (and all products based on that) are free to distribute.
In fact publishers are forced to make their distros free... (well thats the basics).
whilst you might have to pay for Lindows or whatever it may be called now, anyone who does own a copy can freely distribute that, merley for the cost of reproduction, (I think a cd is about 20p and postage if 30p, so if anyone has a copy, you can sell it to others for ~50p you just aren't allowed to make a profit).