Yeah basically, if not they're violating the terms of use you have on something. On most of my freebies, I have a slightly different setup. Basically it states that it may be freely used and redistributed provided that all associated files are kept together (a sort of bastardized freeware version of the licence agreement thing on sale items.) If they play by the rules, they'll keep everything with the model in it's own little folder. But as a maker of 3D models, I feel that any exposure couldn't hurt so I actually allow for commercial use with one stipulation. I require that they cite the source of the model. So somebody could put it in an picture or perhaps with something they have, but they need something clearly saying who created it and where it came from. Somebody could make $, but credit must go where credit's due. Never know if somebody might hire somebody to do a scene using your model. Mister big director guy comes in and asks where something's from, and provided the guy using it plays nice - that could be a big break for the artist getting in on something. (Well, one could hope at least. Heheh...)

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Barbequed Pixels?

Your friendly neighborhood Wings3D nut.
Also feel free to browse my freebies at ShareCG.
There might be something worth downloading.