Can OS 10.2.1 software restore & install discs for iBook be used by others?

My wife's iBook died late last year and I eBayed all the components, including the software restore and install CDs (I made a net of about $200 from everything, after eBay fees, Paypal fees and shipping! But it was A LOT of work!).
The person who bought the software restore and install CDs wrote me today and said:I just find out after many tries to install this system that i got from you, that the reason it won't install is because this set of disk are propeitery, Meaning that after they were installed in your wiife's computer and registered with the apple corp. NO ONE ELSE CAN USED THEM. Meaning it belonged to that computer ONLY. Therefore I'm Requesting my money back. Let me know. --Al.
My questions are:
1) Is it true that the install CDs and restore CDs can only be used on the original computer?
2) If not true, what are the limits of which computers they will work on (i.e. only all iBooks? only the exact iBook that my wife had? Which Macs will they work for?).
Here is the link to the eBay auction, if that helps:
http://cgi.ebay.com/ws/eBayISAPI.dll?ViewItem&item=110192635422
P.S. This question is cross-posted on the 10.3 and earlier forum.

As always, Ronda, you are the best with your information! I have e-mailed the buyer to get his/her system's specs to see if I can help solve his/her problem.
Apple's software license agreement does permit a one-time sale as follows (assuming I have the right info for this situation):You may, however, make a one-time permanent transfer of all of your license rights to the Apple Software to another party, provided that: (a) the transfer must include all of the Apple Software, including all its component parts, original media, printed materials and this License; (b) you do not retain any copies of the Apple Software, full or partial, including copies stored on a computer or other storage device; and (c) the party receiving the Apple Software reads and agrees to accept the terms and conditions of this License. NFR (Not for Resale) Copies: Notwithstanding other sections of this License, Apple Software labeled or otherwise provided to you on a promotional basis may only be used for demonstration, testing and evaluation purposes and may not be resold or transferred.
BTW: I recently went through a long effort to upgrade to Windows XP Home Edition on a computer at my church, using a valid Product Key from a Gateway computer that was being destroyed, literally. After long hours on the phone with both Microsoft and Gateway, I finally determined that their license (EULA) expires when the specific machine expires. It seems that Apple's license is more reasonable by allowing a transfer!

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