I have looked everywhere for an answer to a question on V2 and V3 characters.
After finally completing a character and textures based on Vicki 2, I'm ready to submit to the Marketplace.
My question: Is it legal to include the cr2 file made from either V2or V3? My understanding is that the obj file created from either one can not be included.
I do not want to infringe on copyright.

Will I need to make her into a morph pack?
Umm, I don't know how to create just the morph pack.

Any help is appreciated. Thank you all.

Well you are right, the cR2 cannot be distributed, Daz does not allow CR2's to be distributed for commercial work. So a morph pack is the way to go. I have not done anything with Victoria 3 yet, but V2 is fairly easy. If you need help i believe there exists various tutorials out there. I believe there may be one or two here at renderosity. -LeFrog http://www.dragonfrostgraphics.com

There is a lot of information on how to distribute products based on Vicky in the FAQ section at DAZ, take a look there. Basicly: distributing OBJ-files is always a no-no, refgardless of which figure you are working with. Distributing V2 cr2 is a no-no, since it contains morphs specific to V2 and you would illegaly be distributing those to V1 owners. You need to create a morph pack, which basicly is a pose file including the morph settings. When you save a pose file in Poser, you will be asked the question "Include morph channels?". Click "yes" and you have a morph file ready. The easiest way to distribute V3 characters without legal problems is to produce a INJ Pose file that injects the necessary morphs and dial settings using the Injection Pose Builder application from DAZ.

I made a pose file and discovered that the only morphs transferred were the head and face morphs. Nearly drove me nuts! Finally I just went in and opened the pz2 file then edited it myself. First I copied all morph info to a paper and then entered that in the pz2 file. Now it works right. Why didn't Poser let the body morphs show as well? Ah well, at least now I have my figures morph and texture files ready, on to the ads for the market place (and those are easy). Thank you both for your time and help, it's appreciated.

Yeah, you are correct: Poser will not include full body morphs in a Pose file automatically, that is a known problem... But you figured out how to solve it!