I don't believe Linus made a secret of the fact that he set out to recreate Unix on an x86. Did he use Unix code, probably not, did he recreate the behavior of Unix? Definately. Is SCO and MS full of BS? Definately, did Linus create a new wonderful OS? No, Linux is Unix on the x86 without the AT&T code. Just like FreeBDS which at least admits it is a Unix OS.
If I could hack windows to act like a UNIX box (shuddering) would it be UNIX? it is posix compliant, uses tcp-ip, and can run many of the GNU toolkit applications on it..
BSD is "based on the original UNIX code, while Linux is its own codebase." Free BSD is based off of the BSD code so while not a direct descendant of UNIX is also contains original UNIX code..