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It is possible to sell Scratch projects. The creator can attach any license they wish to the code. However, once a project is shared on the Scratch Website, it is automatically released under the Creative Commons CC-BY-SA 2.0 license, which allows anyone else to view or remix it free of charge. This means that you will need to un-share your project from Scratch if you are or plan on selling your project, since the Creative Commons License can never be canceled. It is probably the most practical to sell either a CD with the project or a compiled EXE/APP. Selling copies of the Scratch program itself is not allowed, but according to GPLv2, the program generated by the source code can be sold with its source code.
This forum topic contains more information on the subject.
