You can do whatever you like with the compiled programs (including distributing runtime-DLL's etc.); What I don't want is for someone to take credit for my work, patch some executables in my distribution and sell it as "Bob's C", or whatever. Including the whole Setup in another package or on a CD-ROM etc. is never a problem - but I like to be informed about it simply to know where Pelles C is being used.
The Setup(s) start with a license page. Like with any other license page in a setup, everyone are using the "auto-ignore" mode apparently.
I'm not a laywer nor a native English speaker so the text may not be perfect. I'm not sure how to phrase it, especially so it works "internationally".
If a native English speaker can phrase this better, I'm happy to update the license text.
( Also: Especially if you are making money from selling programs built with Pelles C, it would be nice if you took some of that money and made a donation to Pelles C - but I will never require you to do so. I'm putting a fair amount of time into this project, so it would be nice to get something in return other than the bug-reports. )