Here is the situation:

I'm in DIII.  There is a DII prospect who has dropped down to DIII.  He is equally considering me and a DII school.  The DII school has 7 total scholarhships, but has filled their 6 scholarships, which is the max they can do in one year.

So, will I eventually sign this guy, or will he remain undecided forever since the DII school technically still has 1 scholarship even though they can't use it?

The DII school can still sign another FR, the rule is that they can not sign more than 6 players in one class.  They 6 they have signed so far are 5 freshman and 1 sophomore.

the rule is, you can only sign 6 people from the same class (FR, SO, JR, SR), not just 6 total.  if you had no one on your roster, you could sign 12 scholarships in a season (but you would only get money for 6 of them). 

You are right, one of the 6 is a sophomore. 

Okay, even though he can still sign one more, what if he doesn't?  Will the recruit stay undecided and never sign anywhere? 

if he is considering you, and you have offered a scholarship, he should sign with you.  unless he signs with the other team of course

Cool.  I'll just be patient then.  Thanks.

Just to follow up for anyone who reads this thread later, he did sign with me at the start of the last day of recruiting, and the DII school did still have one unfilled scholarship.