1) Full permission is granted to distribute the most current official build via a website.
Sure, as long as you do not miscredit it, always make a prominant link to verge's official homepage (currently verge-rpg.com) on any site hosting it, and prominantly feature the current official homepage in any and all credits, documentation, and readme files included in the distribution.
A readme file is required. If documentation and credits exist in your distribution, you must add a link to verge's homepage, but we do not require the existance of documentation and/or credits in any of your distributions. Although, you know, it's nice.
2) Any distribution of the engine via a non-internet method (ie CD, floppy disk, engraving the binary code on pieces of flotsam ) no longer requires the permission of vecna. Frankly, we're curious why you'd do this and want in on the secret, but the choice is yours, so long as you obey the terms of the BSD license.
3) Distribution of the engine with a non-profit game or other utility made with it is perfectly cool, too.