Hi Bwales
I have been offered the iLivid downloader several times and always resisted the temptation to install it, but with regard to the economics of the situation, malware writers get their payback in several ways.
At its simplest, there is scareware :- "Your computer is infected with umpteen thousand infections, send us money and we will clean it !". If you send them money ( don't, ever ) (1) they have your money; (2) they have your credit card details; (3) you still have the infection !
Next there are silent things like keyloggers, quietly working away sending somebody your passwords and other log-in data. This can be deadly if you do on-line banking for example.
Then there are trojans which just take over your computer and use it to generate spam or worse. This has happened to at least three of my acquaintances. Usually the first you know that this is happening is when your e-mail account gets suspended.
There are other means of making money by infecting some innocent bystander's computer - click-jacking for example - but it all comes down to criminal endeavour. Gone are the days when it was some smart-alec bored teenager playing games to show how smart he ( usually ) is.
I think, but would not stand up in court and testify, that iLivid itself is a legitimate product, but I have only come across it on one or two 'interesting' websites which are the sort of places you can very easily pick up malware along with anything like iLivid you may legitimately wish to download.
I assume by now that this computer is clean and its owner happy - I hope you made sure he had up to date protection and that it is kept up to date.
Chris Cosgrove