The OP doesn't seem to know a thing about
FOSS and just what Linux can do.
Just so you know, babysitter2, Ubuntu is a
distribution of Linux. A distribution, or distro for short, is basically Linux's equivalent of what a "version" of Windows is: It's a modification of the
source code, also called a
derivative work. Because Linux is free and open source (linked to in the first sentence), derivative works of Linux are legal. But, you can still violate Linux's
EULA: It's a
copyleft (no, not a misspelling) license. This means that it's essentially dead-opposite of the copyright philosophy: The public owns it. The people (and by "people" I mean the entire world) are who own the rights, under copyright law, of the software. That means that if you try to create a derivative work of the Linux kernel
with proprietary code, you essentially violate the license and will have to, by court order, make the proprietary code open source. However, any other use of the software is perfectly fine, even copying Live CDs and giving them to friends!
Hope this helps,
-Kenny