At Palimpsest, Sarah O'Keefe (Scriptorium Publishing) has recapped the issues on Quadralay and their now revamped EULA. Read Water from a a stone? for the introduction, and Update: ePublisher Pro license.

(This reminds me...at least a little bit...of the brouhaha that took place when eHelp quietly revamped the license for WebHelp back in 2000. I can't remember the entire story, and all the old sites that I'd use for reference are gone now, but I do remember that the license was changed pretty quickly after the issue was pointed out.)