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Traffic-Power Search Engine Placement - User Feedback?

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A website I take care of is using an outfit called www.traffic-power.com which guarantees a certain % of top-10 placements in the top 40 or so search engines.

Has anybody used this outfit?  

I have serious reservations about their methodology and effectiveness, and yet my boss keeps forking over money to them.

Would appreciate your thoughts on their methods:
1. They take 20 keyword phrases the owner thinks are important.
2. They then create "attraction pages" which are templates based on those phrases.  There are 14 pages full of keywords and links for each keyword, for a total of 280 extra htm pages they add to your site.  I think of these as "Search engine bait."
3. They create another htm page that is nothing but links to 1000s of other sites, that have no bearing on the business at hand.
4. They do something that sounds suspiciously like spamming.

The  fee is around $1600/yr.

Would greatly appreciate your thoughts.  Here is their description of how they work.
http://www.traffic-power.com/sep_faq.php

This is my first post to E-E.  If there is interest on methodology, I'll post later about effectiveness.

Thanks,
Bill
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