The article says that the record execs were using Kazaa lite. Or did I misunderstand the point of that post?

Kazaa lite is a sort of "illegal" hacked version of Kazaa. So the article is saying that the record execs were using pirated software and circumventing the Kazaa usage guidelines in order to do their sting operation.

The point of my post is that not only were the RIAA weenies using it, it's likely the kids they were doing the stings on were also using it. As well as a huge percentage of the users on their network.