Yes it is true, the software is totally free and I was lucky enough to come across this as it was quite by accident. I posted about it on my What A Load Of Bullshit blog and how it will allow a blogger to get quality backlinks to their blog.
Apart from increasing traffic it should also hopefully facilitate a higher PR ranking. It works by separating the blogs that do use the ‘no-follow’ from the ones that do not. It also allows you to target keywords PR rankings and different blogging platforms including Squidoo. I can see it saving the serious blogger a whole heap of time.