it's not entirely bs, i know for a fact. recently someone i know installed a later version after using a regcleaner to remove the reg entries used for clone. when they installed the newer version and 'registered' it it gave a message 'clonecd not compatible with mitsumi'. i have also heard of the threat to reformat the hd although i have not seen that myself.
when i went from clone2 to clone3 i uninstalled and used a clone regcleaner to completely wipe out clone2 before installing clone3. i even manually removed all elby and clone entries from the registry. when i installed the new version it registered itself using my name and code. it stores info in some other places. there are some new regcleaners circulating now that are supposed to take care of this.
can't blame olli, though. when i used to write custom applications i would boobytrap some of them that were for clients notorious for not paying. a couple of times it came in handy, too.