this is kind of a noob question and yes i have read the tou but am still kind of lost. are you allowed to make and distribute a game using assets you purchase on the marketplace (models save feature etc)
Yes, as long as you use the assets in a game made in Unreal 
“Besides using them for learning, experimenting, or prototyping, you may use Marketplace products in your own shipped products. However, you can’t sell or sublicense Marketplace content to other developers for use in their products, e.g. via website or ecommerce mechanism built into a 3D development tool.”
Correct, you can use Marketplace assets in your game, but you can’t distribute them separately.
Marketplace content that is labelled UE-Only may only be used with Unreal.
Actual question, I also want to know the answer. I really want to create games, as on this site http://www.nightrush.ca/ . There are a lot of them, all extremely interesting and different. I want to make similar ones, only offline