Yes, basically we are not trying to “sell” the wordpress blog, we just want to include it in the package we sell (Flash based website and CMS to power it). The Flash website and CMS are however not “free” in terms of licensing.
Yes, I would also call it more of selling a service bundled up in a package than selling software.
I just wanted to make sure we will not be getting sued if we start handing out wordpress blogs with the packages that people buy from us.
Thanks for your help so far, you have been informative.