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>The lua license is not clear to me.  If I create a
>commercial application, and modify the Lua engine, am
>I required to make all of the source code to the game
>available?

There is no requirement that you distribute source code. Only that if
you change the code *and* distribute the modified source code, then you
must say clearly that it is not the original code:

    * Altered source versions must be plainly marked as such, and must
      not be misrepresented as being the original package.

This applies to versions up to Lua 4.0. Starting with Lua 5.0, not even this
will be required, as we'll adopt the MIT license. The only requirement will
the inclusion of our copyright notice. See http://www.lua.org/license.html .
--lhf