Yea but they quoted the INQUIRER. It would be like my saying that GPW was caught video taping goat pr0n, but then citing the British tabloid <i>The Sun</i> as my source. Yes it <i>could</i> be true (The GPU thing, not the GPW thing), but I wouldn't worry too much at this stage.
What <i>is</i> true is that Nvidia had a big fiasco with their mobile chips and mobos that saw their stock fall from the mid 20s to the single digits, but I do not think the problem extended to their 8800 budget series. So far, I have seen posters on the popular hardware forums express their surprise at the news item, as no one has been experiencing any issues.
BTW, The INQ has a massive vendetta against Nvidia. You see, a couple of years ago, Nvidia banned them from all of their press conferences for posting rumors/gossip. In fact, at one of their press invitations, they had a huge banner that said,"NO EMPLOYEES OF THE INQUIRER ALLOWED."
Ever since, The INQ has had it bad for Nvidia, reporting all sorts of crazy rumors etc. And any good news regarding Nvidia, has always been posted in a negative light. In the end, this could still be true, but the only source of this info so far has been The INQ, so I wouldn't worry. In fact, if I needed a 8xxx GPU at this moment, I wouldn't hesitate in buying it.