The problem with this idea was the business model. You could charge for brokering the transacation, ala eBay or PayPal, but at the time micro-payments were not a validated business model. Membership fees were another optional, but how many people would want to pay yet another membership fee for an online service?
Well, I guess someone thinks that the model might work in late 2004. I read about this company in Wired, and went to take a look. I like this idea more than Friendster, orkut (which I am a member of) or any other "social networking" system because this idea is grounded in a social medium (music and movies) that forces people to come together in the physical realm (to swap). The only other social network that does this without being completely specialized (in a specific hobby) are dating sites.
Anyway, I'll probably give this one a try and report back!