Too wordy, too hard to read. It took me a number of reads through each paragraph to understand it. Here is what I took out of it:
1. This code is free and may not be sold for profit
2. The author is not responsible for anything that it does
3. All derivative software must use this license

Some improvements
1. Don't explain free software
2. Less wordy, it sounds like you are trying too hard to be all technical.
3. Don't explain no warranty so much, listing each instance off (especially 'acts of god') is not needed

The not to be sold one is a gochya, that would restrict me from using it for my clients. The profit from restricts it heavily, you mean that I can not use the software for a site that I will make money from? There goes all your business and 99% of your domestic crowd.

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