If I read it correctly then you can do what you want with the ROOL/Castle sources only you can't do it for commercial gain without paying a fee per unit.
Take the point about the hardware though but what ever way you wish to dress it up the "Free" bit still comes down to the fact that people do not want to pay. If you were happy with the "Free" element as in your example then you can do this under the Castle licence proposals though you are encouraged to give the code back to Castle and the community.
Still being as all is not well in Linux land with the various factions then what hope do we have in RISCOS land to keep out of the endless GPL type debates.
Video converter port FFmpeg updated Bug fixes and new formats supported for application that converts videos into a format playable on RISC OS computers. Also don't forget Murnong by the same author, which allows users to watch YouTube videos from their ROS desktop. 6 comments, latest by gvrace on 30/11/08 9:41AM. Published: 23 Nov 2008