Jeff,
> I understand the GPL ( I think!) but does anyone know if
> would be legal for me to sell an internet server appliance
> with e-smith pre-installed?
Yes, it would be legal, and you are certainly within your rights
to do so.
However, what might be even more interesting is to look at
partnering directly with us to distribute our commercial version
(with ServiceLink services) as there may be a way to provide
more value to your customers and more revenue to yourself.
I will contact you directly - or feel free to contact me.
Regards,
Dan