The license has been changed for the win32 client and has been approved by Brad and myself. When he get's back to the US on Monday, things will be finalized and repackaged. At that point, all derived projects in violation of the license (sema in this case is the main focus) will have the option of complying with the new license or not. If they choose to not comply, then the client will be in violation still and thus illegal. If however, they choose to comply then all will be fine and development, distribution, etc etc can resume as normal.
The license changes protect all parties involved and were written with that key point in mind.