Please don't link to foreign webmaster threads here. The quotation was fine enough. As for ImageLime, it's not necessarily a "nice" thing to do, but it happens all of the time. If IMGLime.com was available, it is ImageLime.com's own fault for not registering it if they get pissed off. Also they are unable to do anything if they haven't made the name a registered trademark. It shouldn't affect their visitors or search engine rankings though.
Why does it matter? It's a domain... if it was available and he bought it, thats not his problem, its yours for not buying it. I laugh because you think you will get simpathy.... try getting screwed out of money from a PHP coder before you post your problems.