> You may NOT replace the MIT license with the LGPL.

   Hm. I'm confused. The MIT license
   (http://www.opensource.org/licenses/mit-license.php) on the one
   hand says you may "sublicense" (re-license?) the code,

Re-license means changing the license.  Sub-license means adding one
or more licenses.  You can sub-license a MIT licensed work under the
GPL.  You may not (unless you are the copyright holder) re-license a
MIT licensed work under the GPL.

   but OTOH says, "[snip] this permission notice shall be included in
   all copies or substantial portions of the Software."

   So, if you must include that "permission notice", does that mean
   the code must by definition be licensed under those terms (i.e. the
   MIT license)?

No, it means you must include the `permission notice'.


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