This claim is being made by Mark Russinovich at Sysinternals! Anything to this?

http://www.sysinternals.com/blog/200...t-digital.html

A snippet from the blog:

An easier approach is to fool game DRM software into thinking its reading data for playing a game from its original CD rather than from an on-disk copy. DRM software uses a number of techniques to try to defeat that trick, but a straightforward one is simply to detect if CD emulation software is present on the system and if so, if the game is being run from an on-disk emulated copy. That’s where rootkits come in. Two of the most popular CD emulation utilities are Alcohol and Daemon Tools and they both use rootkits.

Alcohol advertises itself as enabling you “to make a duplicate back-up to recordable media of nearly all your expensive Game/Software/DVD titles, and/or an image that can be mounted and run from any one of Alcohol's virtual drives”. When you run a RootkitRevealer scan of a system on which Alcohol is installed you see several discrepancies:

It's old news and is wrong. See the explanation by spath in the link provided.