>According to license.txt file include on VFP8 cd coud be.

>You are not authorized to install or use the contents of this Technology if you do not have a valid license for one of the following Software (or any other Microsoft product or suite of products that includes any of the following Software listed below);
* Microsoft SQL Server 2000 (Developer, Standard, Enterprise Editions);
* Microsoft Visual Studio .NET (Architect, Developer, Professional and Standard Editions);
* Microsoft ASP.NET Web Matrix Tool;
* Microsoft Office XP Developer Edition;
* Microsoft MSDN Universal and Enterprise subscriptions; or
* Microsoft .NET Framework Software Development Kit.

According with MSDE WebSite,
http://www.microsoft.com/sql/msde/howtobuy/default.asp
A VFP8 and VFP7 owner can redistribute legally:
"MSDE 2000 redistribution rights are included in the Microsoft Visual FoxPro® 7.0 and 8.0 EULAs. MSDE 2000 is a local data engine that can be shared and used as a data storage for desktop applications. MSDE 2000 has no enforced user limit; however, shared use by five or fewer users is recommended. For more information, visit the Visual FoxPro Web site."
So, for me it is legal.