Does anyone know what the terms/conditions are pertaining to distributing a copy of the Sun Java JRE on a CD along with a game? I just want to make sure I'm legal when the time comes.

afaik, if you distribute the WHOLE JRE then there are no issues whatsoever. The problems arise when you modify the JRE

you're not allowed to arbitrarily subclass the jre, but there are optional components that you are allowed to remove. they have a webpage detailing this, http://java.sun.com/j2se/1.5.0/runtime.html , and this, http://java.sun.com/j2se/1.5.0/runtime_windows.html , also, the readme.txt file lists explicitly which files you're allowed to leave out.

tribal trouble comes with a private jre distro, I would assume they looked into the issue since they're trying to make money off it, but this doesn't really mean much. in any case, read the applicable license. of course, if you need to be sure, you can only ask a lawyer about this.