No you can thats not the issue at all.
You made a direct quote of Regs post where he explicitly stated his understanding of the license agreement which was accurate and said well no I am using both.

So it gave the appearance that his understanding was wrong.
I dont want people to get confused here. You can run 10 copies on one domain if you own 10 licenses

That doesnt matter. The point is if you own one license you may only install either vbGallery or Photopost Pro once on one domain. You own 2 licenses you can install either application but only once apiece on a domain. It can be the same domain. So in your situation if you own 2 licenses you can have 2 copies of vbgallery or 2 copies of photopost pro or one of each on the same domain. Or one install somewhere else and one install on that domain.
Its really the same you see on any software. Take windows for instance. You can only install one copy on one computer. That is unless you buy some other licensing that states you can install multiple copies. Like the new windows 7 I beleive they have a license that allows you 3 installs for like $30.00 bucks more.