Need help with early game tech...

When the term 'obsolete' is used in Civ3 for any Great Wonder, it means that it basically stops functioning. However, it continues to gain culture.

So, to answer your question, it means that the GL is obsolete, and Education does not give the GL's ability to anyone who researched it.

One more thing. In Civ3, unlike Civ2, you have to get the 'obsoletizing' tech (sorry, made a word up) to make your wonder obsolete. What I mean is that everybody can have this 'obsoletizing' tech except for you, and your wonder will still work. Once you get this 'obsoletizing' tech, your wonder becomes obsolete. So what you want to do is NOT research education under any condition. Eventually, 2 civs will have it, the GL will give education to you, and it will become obsolete. So not only does the GL not last a long time, it also makes itself obsolete! What a rip! :P
 
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