For reference the program apparently only runs on Windows based machines, and (was) stored on a floppy, so if you don't have either of those you're in the green. I also heard of people refusing the check with no repercussions, so they can't be that serious about busting people (Besides, if they really wanted to catch people they'd be far better off hunting people with mp3 players)
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Seeing as I also see it as a huge invasion of privacy, in the event that it comes up I intend to refuse. I've passworded my laptop at both the bios and login, and while these are both easily bypassed they will allow me more than enough time to crack some heads and retreat into the night.
That said, I'm not sure how much of an issue this is now. The checks were conducted last year around the time when multiple Australian universities were busted for having pirate material easily available across their networks, and were fined accordingly. At this point UoW issued a reminder to students that this isn't legal, and the checks were conducted to attempt to ensure that similar activities weren't going on at UoW.
Not that this excuses what I see as an invasion of privacy, but it may be that the University did this in a knee-jerk reaction to ensure that they weren't also liable. If that's the case, I'd assume things have calmed down somewhat since then, though it doesn't hurt to be ready just in case it flares up again. Certainly I don't recall hearing of any checks outside the fortnight or so in which these were conducted, though that's not to say that they haven't happened.
Yeah, I think that covers it, you probably shouldn't worry too much, just make sure you're ready to deal with it if it ever happens again