Am I allowed to sell some custom figs using BF items but give credit to BF for the items?
Just have a few lying around and if I could sell them then I would be able to update them with newer BF.

Technically, you can do whatever you want with the products you buy. The initial concern was that a vendor was selling BF products as something he had created. Then the issue became that he was using decals made by members of the Lego community and selling what he did not own. He does own the figures he is selling with Brick Forge products on them. So if someone sees fit to buy or sell BF products on minifigs, there is no real foul. I'm just speaking on my own opinion and not necessarily on the behalf of Brick Forge.

Thanks for clearing that up.
I found it a little hard to follow the conversation.

This whole thing was one of those pulling at a thread deals, I noticed he had a custom minifig he was selling in his store which he proclaimed had BF products on it, It did not, then QB in his ever inquisitive mood decided to check out the guys other stuff and discovered to his horror the guy was also stealing his and others designs for his own personal gain, without permission or a how do you do, which angered a few people whos designs were being hijacked like QB and AS (AggieSava), so once that thread got pulled some more the guys entire operations fell apart and he was busted for being the plaguerising thief he was.

Actually, the decal stealing was dealt with in a decent manner. I do not know if it was pressure put on by Brick Link Administration and AFOLs, or just someone not knowing any better. I received an e-mail asking me for a link to where my stickers could be found so that they could be removed and an apology. Then I received an e-mail asking me what program to use to make decals. Quickblade has 2 sides, so I provided the name of 5 different programs that some customizers use. I stopped short of inviting him to the Forums here, but if he buys BF items he should know we have a form, and I'm putting this issue behind me not trying to continue it. Bottom line is .... if you see stuff being plagiarized like this, let people know. Sometimes people do the right thing, whether it was the owner of the site or the Administration of Bricklink.

Well Like I said not being familiar with your work I was unaware he was plagiarizing your work, also Admin could have just deleted the items in question himself.

Sometimes it is best that the Admin gives the person a chance to delete the things themselves. It acknowledges the fact that they know what they did was wrong.

-Omi

Actually BL's Admin does not offer said opportunity nor a chance for the "Offender" to plead his case before he removes said item, this has happened to me once, but was able to reverse the situation since I proved my items were not exact copies or any laws were broke.