What is considered "Modification"?

A lot of freeware apps have rules about how to distribute them, whether it is allowed or not, and how.

I would like to clear the air/have it cleared on what denotes modification, and whether it is allowed based on the EULA of a program

Take for example Project64:
The authors are not affiliated with any of the companies mentioned, this software may be distributed for free, never sold in any way, as long as the original archive and software included is not modified in any way or distributed with ROM images.

(supplemental, from another file included)
You may NOT repackage Project64 (add, remove, alter files) without the authors' permission - this INCLUDES distribution of Jabo's and Zilmar's plugins seperately - they are a part of Project64. It's also best for users if they get the complete package and documentation. You are welcome to distribute the original archive as long as you do not charge for it.

MY interpretation
Now, their software is packaged in an installer, and according to this license you may not distribute it either not in that installer, or in a modified version of it, without their permission.

Next is epsxe:

EPSXE Copyright 2000/2008 EPSXE team.
Sony Playstation is registered trademark of Sony.
Gpu.dat is pete bernet's copyright.
All mentioned games are registered trademarks of their authors or marks.
You may only be in possession of the copyrighted BIOS if you're legally
entitled to do so.Neither the ePSXe Team software nor its authors are
affiliated with Sony. ePSXe is freeware and can be distributed freely as
long as it is not modified or sold and the BIOS isn't packaged with the
program. This readme must be included with the executable.

MY interpretation
Now this was in simple zip folder, nothing about the original archive is mentioned, the only requirements are that the readme is included and the exe is ummodified

What do we have?
Unfortunately, software license and copyright is often overly/ scrutinized, or not enough, and wording is often interpreted differently by each person

PA team, I would like to help in making clear what is and is not allowed when it comes to app's and their licenses.
In the case of some software, we may not be able to get a reply because the developers have disappeared, so in this case all thats left is the license.

First bit of documentation:
The Online Installer
The online installer allows us to download a file, then extract it (if its in an archive) in this method, the original package is unmodified, thus for nearly all licenses, is suitable.

A question I have, say in this case of epsxe's wording, how do you interpret it? because if my interpretation is correct, then I could make a PAF version right away without the need to use an online installer.

I'm not saying we need one, or that I should be making it, but I thought a basic "guidelines to developing freeware PA's" might be nice to have, and this was first on my checklist to cover.