Yes, by definition Free Software and Open Source Software can be sold by other people - that's part of the freedom
Even the software vs. CD distinction doesn't matter - they're quite entitled to charge you loads of money for the software itself, if you're stupid enough to pay it.
I'm not aware that any open source/free software licences require you to advertise the licence when selling it - usually it's only that the licence is distributed with the software.
Nope, I believe that only applies to the offer of the source code - if they give you the binary, and you request the source code, they can only charge you a nominal fee. However, they can charge what they like for the original binary.
I see no evidence of any violation here. It might be that the source code is included on the CD. The only way to tell is to buy the CD, and if it's not on there, request the source code from them.