Fool me once...
It's worth noting that Sandi Thom, whose webcast concerts from her basement caught the attention of RCA/SonyBMG last week, had a publicity company working the press angle.
That's not to say her story isn't legit or success is undeserved, but it kinda takes the wind out of the sails of those "made it big on the internet" stories, in my opinion. The implication that Thom's success was unaided was pivotal to giving this story legs. I guess that's exactly what it was: implied, but not entirely grounded in truth.
Update: agh, Coolfer scooped me, and with more details. That's what I get for spending time outdoors last weekend.