I think the way Gerard is interpreting this passage
Permission to use, copy, modify, and distribute this software and its documentation for any purpose and without fee is hereby granted,
is that you can DISTRIBUTE the software but you can't CHARGE A FEE.
However this appears in the normal python license and many others and I am sure the correct interpretation is that you can USE, DISTRIBUTE, etc the software without PAYING A FEE (to the copyright holders.) It is free software, a XFree86 style license according to RMS, which is BSD-like but with no advertising clause.
Gerard, the license is fine for distribution and as Joe said, similar to many other free software packages.