"Oh its illegal? I guess I misunderstood the license, i thought it was only illegal for commercial products."

The actual restriction is that you cannot distribute the base model, so even if you just make a game and give it to your friends technically that would be illegal. Of course the Poser people probably won't find out but is it worth the hassle? And of course there is always the argument that if you drastically change the base model is it something different that is not restricted?