dar.fm hit with cease and desist-is it stealing?

[Larkin]

http://www.radioink.com/Article.asp?id= ... spid=30800

That's the article, and this is the website:
http://dar.fm/

I really don't see how this would be legal either. I know its ok to make recordings for yourself, but to have a website where you offer to record for others.....doesn't seem kosher.