The Electronic Frontier Foundation (EFF) has confirmed that Sony-BMG includes software called XCP2 on at least 19 CDs currently shipping. The software is installed immediately when you insert the disc into your computer and cannot be (easily) removed or even FOUND afterwards. The software has been classified by much of the tech community as a "rootkit," meaning a set of tools installed by an unwanted hacker after access has been granted in order to help control the system. Sony has supposedly released an "uninstaller" for the rootkit, but it apparently is difficult to use and might not even work fully. It should also be noted that the software is ineffective, since it indiscriminately hides anything that starts with $sys$, including from itself. Therefore, if you are trying to rip the CD to mp3, which is what the rootkit is designed to prevent, you simply have to rename your software. This technique has also been used already for other nefarious purposes, including cheating in video games.
This EFF article lists the 19 known CDs that include the rootkit, as well as instructions on how to identify CDs that have the XCP2 software on it. I would suggest avoiding these CDs.
A VERY technical discussion of the rootkit can be found here.
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