Here's some more info from Slashdot:
normant writes in with a note about QTrax, a 5-year-old startup that just announced deals with all the major labels to provide free, ad-supported music downloads. The new wrinkle is that, though the free tracks come encumbered with Windows Media DRM, QTrax claims that they will be playable soon on iPods. Wired's assumption is that the company is on the verge of a deal with Apple to allow use of its FairPlay DRM in place of Microsoft's. (Apple hasn't licensed FairPlay to anyone so far.) The AP coverage of the story assumes that QTrax has found a way around FairPlay on the iPod, and if so, that its solution will break the next time Apple updates iTunes.
Here's the discussion:
http://yro.slashdot.org/yro/08/01/27/2237255.shtml