I am confused....what are you referring to exactly? I've read it over and over. As long as you dont resell the actual ELEMENTS themselves, you can use it as freely as you want in any audio composition..... can you enlighten me?
Well, you quote item 1 of the conditions, but haven't mentioned the rest of them. And if you are going to stick by the spirit of the rules (usually a good idea), then one or two in particular are going to cause you to have to hand over some of your stuff, and you are going to have to do some work for free, by the looks of it. Note particularly items 4 and 6, and in terms of item 1, also note item 3, which may limit your freedom to do as you want anyway:
2. You must visit the web-sites of our sponsors. See what they have to offer. You may need it someday, and after all, they are essentially footing the bill for this service.
3. You must obey any market restrictions attached to a file. If someone says..."Don't use this in Detroit"...don't use it in Detroit....etc.
4. You must agree to contribute something to the site. A text file of liners, an example of imaging (using Free Box elements), an original audio composition, an assembled sweeper shell...SOMETHING...to add value to the site. This is a community, and we need your creativity. It doesn't have to be today, just share something when you can.
5. You must promise to contact us immediately if you hear something from another sound design service on the site. We want to accept submissions, but we don't want to get sued. Your fine tuned ears will keep us from accidentally distributing other people's work without their knowledge.
6. You must own all rights to any original audio composition you submit to Free Box Audio, and understand that it will be distributed freely under the terms outlined in this document.
7. You must tell other audio producers about this service. Web traffic keeps our advertisers happy, and we couldn't keep this site going without them. Do your part, and spread the word!
Anyway, look on the bright side, because at least you've made a start - you appear to have complied with item 7!