It appears that the SMO components may be redistributable. The Management Objects package is freely available from Microsoft's site (as part of the Feature Pack for Microsoft SQL Server 2005 (http://www.microsoft.com/downloads/details.aspx?FamilyID=536fd7d5-013f-49bc-9fc7-77dede4bb075&displaylang=en) or Feature Pack for Microsoft SQL Server 2008 (http://www.microsoft.com/downloads/details.aspx?familyid=228DE03F-3B5A-428A-923F-58A033D316E1&displaylang=en)
Additionally, there is a blurb contained within the verbiage of the download page which reads:
Download the appropriate file by clicking one of the links below, then run the downloaded file to install that package.
Each package indicates the audience(s) for which it was intended, as follows:
Customer: An individual may want to install this for additional licensed functionality such as interoperability.
Partner: An ISV may want to ship this as a redistributable component as part of their application.
Developer: A programmer may want to install this to support application development.
So it looks good for SMO being redistributable.
-- J.Kozloski, MCDBA, MCITP