They aren't prohibiting "Free Software", they are prohibiting software that is under a license that requires the distributor to pass certain rights along to the recipient. Hence GPL like licenses that require distribution of source code, and that you grant redistribution rights to everyone you distribute it to are being explicitly prohibited. (And in fairness I can see why those licenses would cause problems for Microsoft as distributors) On the other hand BSD like licenses that allow you to repackage and distribute without source and without passing rights forward are acceptable.
Yes, the Internet mob wants to agree on what is just and attack those who are against that. Sony is bad, they do tons of crappy things, but what is happening to Sony Pictures right now is worse. We'll bash Sony another day when they aren't be eviscerated by a group threatening to kill people and still put peace in their name.
I love sharks and marine biology, but I think posting a link on Slashdot to a server that has already been crashing is like beating a dead horse.
50 miles is 80.4672km so even higher than you thought. https://www.google.com/search?...
On the open source topic see another discussion here http://news.ycombinator.com/item?id=2226260 and this quote by SimonPStevens
As an aside for those interested in how easy it is to setup or how much you can customize it. I setup this site for my last job at http://www.gwca.org/ (its been a bit butchered since then so your mileage may vary) and it had a steep learning curve but was extremely powerful and very easy to customize.