I'm not sure what your question is....
Does PHPFusion have a free script to use on a free host? Well, it is a free cms script and you can use it on any host that meets the requirements... I use it on two paid hosts, a free host and a local server.
Are you allowed to supply PHPFusion to your customers when you are a free hosting provider? I'm not sure but I think so. It should be in the license, somewhere here on this site.
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