Yes it is true,
Sony DMR installs a rootkit: Just a summary for the quick readers- the investigation was done by Mark Russinovich. The rootkit is installed with a DRM-encumbered music CD, Van Zant's "Get Right with the Man" (how ironical). The rootkit introduces various security holes into the system to be exploited by others, such as hiding any executable with "SsysS". Programming bugs in the hook system calls method make it develish to "exorcise thisdaeom" from your system.
We know that the music industry and Big Media scan computers for illegal content all the time (browser like bots), but that they reach for these means to make their statement is a bit over the top. And here a link for a further exposé:
http://www.f-secure.com/weblog/#00000675Important to know is, do not try to get it from your system yourself, this could result in trouble with your CD drive recognition, go contact Sony and ask them for removal instructions or at the maker of the software:
http://www.first4internet.com/greets,
polonus