I get the part about anything made from Blender such as images, animations, scripts, etc. is property of the person who made it and can therefore can do whatever he/she wants with it. However it is the 2nd part that I am confused about, in terms of making a game using blender. It states that if a standalone executable was made then it fell under GLU, otherwise it was fine. What exactly does it mean by this? I do plan on making a game, but I was going to use Blender to make the materials I needed, and use Unity to build the game. Am I not allowed to do that?

Not sure exactly what you are referring to, but making art and using it in another game engine (or anything else) is fine.

Here this is what I am referring to:
http://www.blender.org/education-help/faq/gpl-for-artists/#c2127

I don't where I got GLU from.

Quote:

I don't where I got GLU from.

Something stuck in your brain, maybe (joke).

The business about stand-alone executables refers to creating a single executable file with the game engine. If you load a .blend with the player, there is no problem.

General rule of thumb: if you make it, it is yours.