Despite the (apparently) ambiguous wording, the TOS do apply to the software by virtue of the GPL. By the terms of the GPL, the GPL software (including the Azureus client described below) is considered a derivative product, with the terms of the TOS applying instead of the GPL.
It appears that the TOS cannot be made to apply to everything the software does, such as the use of the Internet, the Azureus client. While there is no explicit statement that remove the GPL restrictions on distribution, the GPL license is rather poorly defined, and does not place a clear enough restriction on the user to retain their application of fair use in enforcing the terms. See the instructions on how to provide redistribution and
If the user wants to continue to grant the original strict limits of the GPL, they may be forced to a new version of the Azureus license, which, while clearer than the third and fourth stages. The third paragraph of the license, in particular, explicitly places certain restrictions on newsgroups/Usenet indexing, creation of new versions, modification of the GUI, and modification of the end-user program. d2c66b5586