(If you’ve come here from the PC Magazine story, you can find more of our posts on fake Codecs here.)
It’s used as a way to get spyware on your machine.
Update: I had graphics on here but had to remove them as they were live linked to another site and not getting update.
Not surprisingly, V-Codec.com is hosted on Intercage, a notoriously spyware friendly ISP.
Beware of these fake codecs. They are bad news.