Virgin are it seems planning to go ahead with their spying on customers now they have agreed a "golden handshake" deal with the recording industry, here is a report they are circulating to try to convince folks that no personal data is retained or made available "in human readable form", this is however far from the truth as this data can be combined with other data they routinely generate and users can be identified by an aggregated method.
Snooping in this way is illegal if data is able to single out a subscriber under UK and EU law, but we must remember its the UK governments business secretary (Mandelson) who is pushing for "disconnection by accusation" and thus we are unlikely to see any objective oversight applied to Virgins activities, that doesn't mean as consumers that you have to roll over for this, you can start complaining now and letting Virgin know your not happy to be used in their trails of such technology nor are you happy to be spied on in general for the benefit of the recording industry.
http://regmedia.co.uk/2010/02/01/vm_cview.pdfMake some noise folks or lose your voice , better still dump virgin if possible, an ISP that does not spy on you is vastly preferable to one that does and for its media friends.