not quite so. the free version (the small one) has no spyware but you can only watch divx films, it can't encode anything. the next version (ad-version) has a gator-client, puting advertisment on your screen. bad thing is that it's not only doing that, but it sends your computer configs, installed software and even your surfing habbits to gain, who is using the data for some markt surveys and to put only filtered adverts on your screen. i could live with ads, but spying in my system is a NO-NO! the registered pro version (30$) has no spyware in it. deinstalling the ad version doesn't deinstall spyware, though!!!