The article I read was about one of these freeware applications (something starting with "G", and a green Logo or mascot I think, I can not remember unfortunately), which installs the spyware if the users does "Express Install". Buried in the TOS is "we may use your computing power". It was by a third company, which in turn is supposed to be used by 80legs. Perhaps 80legs is not even aware of the shady practices of that company.
You're talking about Digsby. If you managed to follow the story to its conclusion, you'll see that they dramatically changed the install process to follow Plura's (our sister company) affiliate agreement.