Well I've never heard of it before, and it's really hard to tell if it is legitimate or not. One thing i did notice though was that after you register, you must buy bids from the site before being able to bid on any items. The prices for "bid plans" aren't listed anywhere I can find them, and might only be visible once you register. So even if it isn't a complete scam, while many of the auctions are going for an absurdly small amount of money, you may be paying a huge premium to actually bid on any item. Also, every bid is for only one cent and resets their little timers. This means you can spend tens or even hundreds of bids on a single item.
I agree with your first assessment. If something looks too good to be true, it probably is, and i sure wouldn't want to find out the hard way.