iinfi Aijaz Akhtar had put it right. Technically an enterprise versions of distros like Suse and Redhat enterprise are for commercial usage, as they also contain few if any commercial packages especially for the enterprises. That will include license for them. Under the hood the part which is under GNU/GPL is still free and is available in every downloadable versions of software they offer.
So no you may not be able to give boxed copy freely if certain license dont agree.
But you have enough cache of distros for every possible need, and they are more geared towards desktop user needs than towards enterprises.
You can get most of them at
*www.linuxiso.org/
Why do you want to have FREE distros? If one can pay for boxed pack of Windows then one should be willing to pay for Linux distributions also..
No body gets it completely free, atlease every one have to pay for the media somehow.

Ubuntu being an exception but still are paying for the net access
Any ways if the commercial distribution is geared towards desktop users then why not, after all many people do purchase it. I had purchased Redhat8-9 when there was no fedora.
There are more linux distributions that sell like Linspire, SUSE, Xandros(I hope I am not wrong on this one). And few more.
I have heard that Linux can amount from free to lots of rupees.. I would like 2 know which LINUXes are free out of the given list:
Arrow UBUNTU
Arrow SuSe 9.1 Personal
Arrow ELX
Arrow Madrake 10.1
Arrow Fedora 2.3
Arrow Knoppix
>> Siddhartha
Ubuntu, Mandrake, Fedora and Knoppix are free as in freedome so you can make copy, distribute. I dont know about ELX so i skipped it.
PS: There is no Fedora2.3, may be you mean 2&3
Single CD or Live CD distributions will not have every thing and in almost every case not development platform. Like knopix or SUSE live.