Yes you are missing something. the Distributable code is not the VFP executables and DLLs, it is the code they have included like in the samples, etc. I further elaborated on that here:

Re: EULA for VFP9...what the heck is THIS?? Thread #996016 Message #996620

MS can put a restriction on VFP code they write just like we can put what we want in our EULAs to our customers with respect to the VFP code we write. However, our EULA can not grant rights to our customers that are in conflict with the VFP EULA.

Enforceability is usually determined by whose lawyer can make the best arguement.

>Am I missing something? Look at the third point under paragraph 3 (below). They are specifically tying VFP to the OS. Which, by the way, I am convinced is unenforceable. If Microsoft sells you a pair of shoes, they cannot force you to walk ONLY on MS Sidewalks.
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>There's a lot of garbage in most EULAs that is not enforceable. Another example is the notion that you "cannot reverse engineer, disassemble, etc." Court cases surrounding license disputes have actually proved that to be hogwash.
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>*********************************************
> 3. Distribution Restrictions. You may not:
>
>* alter any copyright, trademark or patent notices in the Distributable Code;
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>* use Microsoft's name, logo or trademarks to market your programs;
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>* distribute any Distributable Code that runs on any platform other than the Windows platform; or
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>* modify or distribute the source code of any Distributable Code so that any part of it becomes subject to an Excluded License. An Excluded License is one that requires, as a condition of use, modification or distribution, that:
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>* the code be disclosed or distributed in source code form, or
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>* others have the right to modify it.
>**********************************************