Actually, this is true. I'm not doing it, because well, even if I do get an iPod, what the hell is the point: you can't even d/l music anymore (you get my drift).
I've seen a few threads outside this website that have ongoing communities just dedicated to getting these things; obviously, it's a you scratch my back, I'll scratch yours type of deal.
As far as I know though, there are various conditions to the offers. There are some where you can complete a free trial offer, and then cancel it the next day (everything will still be totally legal). Others though; I think there are different rules. There is also some other website giving out LCD's; it's not just for iPod's.
Oh, btw, those people in those "communities:" yes, they did get their shipments. I think the company has some really strict policies on IP usage/signing up from the same computer more than once/etc.
Oh well. Whatever. I'm not getting one anyway, so I don't care.