I've downloaded at least 10 files from that site and I've had no problems at all. If you surf the internet and don't have a good anti-virus then you're a fool anyway and deserve a virus.
It doesn't sound like anyone has been infected, so it's probably bullshit anyway.
They call it the Music Industries secret weapon against piracy, but less than 10000 people even use the service. Not that effective if you ask me. It'd be better to attach that thing onto a fake song on Kazaa or something.
I'm just saying I haven't experienced any problems, and neither has anyone else. Seems OK to me.
edit: I do get one pop up when I log on though. But that's no big deal.