You can do all that just fine as long as you aren't charging for the redistribution. The money only comes into play if your are charging something for the redistributed works. Basically, if you're charging for it, we want our fair cut. If you're handing them out for free, no problem. See you on the flip side, dude! :)
Right, and thats the catch.. We'd be handing the works out for free in person at LUGs and such, but for those people that want _our version_ of the converted works, which involves quite a bit of hand-editing as well as several passes of post-processing to convert them to our (open and documented) portable format, shipped to them on hard-media (CD or DVD), we would (potentially) charge for the media and for the time/effort expended to convert them all. We're not actually charging for the works themselves. I realize it seems grey, but it is distinctly different. d.