Given that all the source code contains explicit permission to use or
modify the code without fee in addition to the shareware notice, I would
say that the shareware notice is unenforceable.  All you need to do is
make minor changes to create a derivative work which is explicitly allowed
under the first part of the copyright notice.  Of course, this would be
circumventing the author's wishes on the subject, but I'd say if you're
not going to pay him no matter what, you'd be on relatively safe ground
with that approach...  In fact, given the internal contradictions of the
copyright notices, I'd guess none of it could ever be enforced, but not being
a lawyer, I can't be positive.

Regardless, the fees he's asking are not excessive, and I would encourage
anyone who wants to use the program to pay them if at all possible.  Even
though it is unlikely that you have actual legal obligations to pay the
author, it would be reasonable to do so, to support his efforts if nothing
else.

- Brad
