>The person should not be able to copy, modify, or sell the item.
Impossible.. The item either has to be copyable but not transferable. Or non-copyiable but transferable.
>The item should be rez'd to the ground to use.
Sell it with instructions, but if it's a bike or something, most people will realise it isn't a hat.
>How should i set the permissions for the internal objects, the scripts, the textures and the main object such that it can be rez'd to the ground to be touched to activate, but still cannot be copied or sold. But I can still sell them from a vendor?
You have two options...
1) Make all the objects mod/copy/no-transfer and the scripts no-mod/copy/no-transfer
This will mean that whoever buys it will be able to replicate the item as many times as they want, but no matter how many they do, they won't be able to profit from it as it can't be transfered. The scripts inside, even though it says copyable, they will not be able to view the LSL inside them. They may move the script to another item of their own, but that item will then become no-transfer also. So you can't lose

2) Make all the objects mod/no-copy/transfer and all scripts no-mod/no-copy/transfer
This will mean that whoever buys it will have just the one copy of this item, they may mod the actual item itself but not the scripts, and yet again the LSL will be hidden from them.
Because it is non-copyable, they may transfer it... say if they bought it as a gift or got bored of it and sold it. But they will only be able to sell the one copy, it will leave their inventory forever.