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With keeping it 'private' I meant that you do not redistribute the code. So having only one site, or only sites owned by your client, would be doing that. Then you don't have to make the source code available, because it stays with the original owner of the code.
As for having a closed-source app working with XOOPS, if you have the app write to the XOOPS tables, and have a page that brings XOOPS core variable values (isuser, iud, etc. etc.) to the application, then they wouldn't share processes, as the app could function independantly of the core. You can do this using XML-RPC, or whatever. But then it is possible.
To bd_csmc, the GPL doesn't have much to do with 'packaging', if you want to add the closed source app to the package, you're free to do so. As long as the apps processes don't mix too much. At least nothing essential.
Herko