How about you ask them what you're buying?
Are they selling you the OS? If they say yes, then I would suspect that this was illegal.
Why would it be illegal? If all the content is GPL'd then AFAIK there is nothing that forbids you from selling it for any amount you want (possibly under the provisions for transferring the copy or offerring a warranty). Of course you have to provide the source code at no extra cost and not impose any non-GPL limitations on the purchaser.
It may not be scrupulous to ask $500 for a CD of GPL'd software, but it's not forbidden. You'd be hard pressed to find someone to buy it of course!
You couldn't do that for example with Red Hat Linux 9.0, because it contains trademarks which are under a less Free licence, but I'm not sure if that is the case for Fedora.
Greg
