I have not used it myself but studied it a bit after reading your post and here are the key points.
1) You purchase bids at 0.60 per bid.
2) Auctions start at 0.00 and consecutively increase by 0.01 each bid
3) Each time you bid, it costs you one of the 0.60 bid previously
4) If someone "snipes" a bid in that they attempt to bid within the last 10 seconds of an auction, then it adds 10 to 15 more seconds for other people to bid
Conclusion
I would not say it is too good to be true necessarily but more that it is not exactly what it might seem up front. While it appears you can get an IPAD for 30 bucks, at 0.01 increments that is 3000 bids. That equates to 1800.00 for the company/vendor. If you get in a bidoff to get there and half of those 3000 bids are yours, then you are really paying the 30.00 winning price plus the 900.00 (1500 x 0.60) for the bids.
It is actually kind of interesting because I remember reading this psychology study where if you put a group of people in a room together with a dollar in the middle of the table and say that you will double it every minute until someone takes the pot that people invariably take the pot for themselves within a short period of time rather than agreeing to let it get to a certain point (ie millions) and splitting it evenly.
This works almost backwards in that if everyone just agreed to bid 0.01 on several items, then you would effectively get anything on the site for 0.61.
