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but all my research showed it was my program and I could do as I wished, they paid for their system and it was delivered. That didn't allow them to market the software to other companies.
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Are you sure? If the owned the software, that gives them title - which they can sell or license. If the work for hire doctrine applies, and I suspect it does - absent a contract that reserves rights for you, I think your "research" lead you to an incorrect conclusion...

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Here's another wrinkle, most of the underlying code was generated by VFE, how does that play into the copyright picture. Even if they had gotten the software, they would not have had much. They didn't know what they had, only that it was fast and efficient, and they thought they could sell it. Too bad I wasn't as well versed in Web Connection as I am today, I could have really wowed them. Heck, they might still be in business! < G >
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I don't think VFE has any bearing on the issue. I think there is a commercially available report writer written using the VFE framework. What you can/cannot do is spelled out in the VFE license...