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>I have written a program which uses Lua, which I intend to distribute in
>binary-only form. I was just looking at
>and wondering how this license applies to this situation. Does the line
>which saya, "The above copyright notice and this permission notice shall
>appear in all copies or substantial portions of this package" also apply to
>binary programs linked against the Lua library? If so, does this imply that
>my program must be freely redistributable if it uses Lua?

Binaries that link with the Lua library already contain a copyright string:

%ident lua
     $Lua: Lua 4.0 Copyright (C) 1994-2000 TeCGraf, PUC-Rio $
     $Authors: W. Celes, R. Ierusalimschy & L. H. de Figueiredo $

I think we mean that you're not allowed to remove this from you binary.

In any case, there is no restriction on your final program; you can sell it
or distribute it freely, as you wish. Lua's license is not viral like GPL.