That's interesting - I'd never heard that. I buy a lot of music from both, especially BMG, and haven't had any problem with sound quality or durability - they look and sound just like normal CDs. The BMG ones do usually say "manufactured for BMG..." on the cover.
They do tack on a lot for S/H as well as tax - closer to $3 when you add it all up. However, you can usually buy from BMG for $5 a piece, so $8 a CD is what you're paying which is a heck of a deal. BMG has a lot of excellent jazz CDs. They're also great places to get boxed sets if you like that kind of thing - MUCH cheaper if they have it. Their overall selectiion isn't what CDNOW or Tower records has, but you can save a lot of money and fill out a collection there pretty easily. -Kirk