http://www.foxnews.com/story/0,2933,513877,00.html

First off, I didn't know this was even legal.

Since they are near the Berkshires and call their money "Berkshares" if Portland and Vancouver were to print their own what would they call it?

Be creative!!!

Unless they are exploiting some legal subtlety, I don't think that this is legal. Remember Liberty Dollars? Their creator claimed that they were a form of scrip. The federal government frowned on him, nonetheless. See http://en.wikipedia.org/wiki/Liberty_dollar#Legal_Arguments

What is the difference between this and the "Trade Ya" script issued under some bartering systems? Or the trade dollars issued in some communities during festivals or fairs?

From Answers-Yahoo.com:

I have a liberty silver trade unit 1989 one troy oz coin how much is it worth? Answer:

http://answers.yahoo.com/question/index?qid=20080628072809AASU8DG

Not to be confused with the late 1800s trade dollars that are worth considerably more:

http://www.letcoin.com/TradeDollars.htm

Of historical interest:

"Beaver Coins, also known in pioneer days as Beaver Money, were gold coins briefly minted by the Provisional Government of Oregon in 1849. The coins were available in 5 and 10 dollar denominations. Their name comes from the prominent beaver depicted on the obverse of the coins. Today these coins are quite rare and valuable."

http://en.wikipedia.org/wiki/Beaver_Coins

This is probably more apropos:

"Along the northern edge of McLoughlin's townsite was the land claim of George Abernethy. He was a steward of the Methodist Mission from 1840 to 1844. He supervised their granary and operated a mercantile business. He invented and circulated "Abernethy rocks" -- flints inscribed with his initials and backed by his high standing -- for making change due to the lack of circulating currency."

http://www.octa-trails.org/learn/people_places/articles_oregon_city.php