It is definitely true.
I saw it on a danish consumer program just the other night.
Some kid was complaining that his 1 week old game had broken inside the drive.
Then they showed footage from a lab test made by the proper authorities (consumer-something...?) in which they spun a cd that had a crack in it up to modern drive speed and after some time it simply exploded.
Looked cool, actually :-D
But it *does* make you think :-o