The seller is of course allowed to sell the domain (the old LWO domain - I don't believe the seller has got anything to do with LWO though, he likely picked up the domain after it expired) and the three months worth of site hosting... but I have reported the auction to ebay as "Offering to electronically send or receive copyrighted material".
Then there's the website...
BTW, to give due credit, I was notified of the auction by PA forum member darkonesluck.
-- Thomas