Whatever, the labels are just jealous of AllofMP3's huge growth potential.

AllOfMP3.com Will Not Die, No Matter How Many Angry Companies Sue It [Idolator]
Weak iTunes Sales a Blow to Record Labels [NPR]

But the site won't give up yet — they e-mailed frustrated users offering a way to launder their cash through partner company Xrost. Now it's just three steps from credit card to $1 albums. The full e-mail is below.

Hello,
We're sorry, our payment system is not accepting credit card payments at
the moment.

At the moment you can add money to your balance on the site of our
partner allTunes.com. You can make payment via Mastercard, Diners, JCB,
Maestro, Solo, Switch, STB. Please use this link
http://alltunes.com/payment/refill.shtml
We'll inform you when the Visa payment will become available.

You can refill your Allofmp3 balance either with credit card or even
with cash - via Xrost service. Xrost sells online prepaid iCards that
can be immediately redeemed at Allofmp3. Xrost iCards can be funded by
trusted international pay systems which accept both credit cards and
cash (if you don't have a credit card or don't want to use it online at
all).
You will even receive a bonus of 10% if you redeam Xrost iCards with us.
You need to purchase a prepaid icard of desired value at Xrost.biz web
site.
After successful payment you can find your icard details (pin code and
claim id) on the Orders page of Xrost.biz site and then redeem this
icard on the balance page of our site:
http://www.alltunes.com/payment/refill_xrost.shtml?

Best regards,
Sales Allofmp3.com

Earlier: AllofMP3: Going down in a blaze of glory [Valleywag]

AllofMP3 claims no court of law has found the site illegal, but the U.S. has long called it a roadblock to Russia's entry into the World Trade Organization. The company's defense: Its site warns users to check their local laws. In other words, even if Russian law is really so backward as to make AllofMP3 locally legal, the company knows it's providing illegal services to users in the U.S., England, and other countries with real copyright laws.

Eventually, Russia will give in and crack down on the site — it's just not worth being left out of the WTO. It's not much of a loss. After all, AllofMP3 is still a buck an album, while grabbing something on Bittorrent is free.

Blacklisted AllofMP3 slams 'capricious' Visa and Mastercard [The Register]

• AllofMP3.com loses another battle as Visa and Mastercard plan to pull out of the controversial Russian music store. As of press time, credit card payment on AllofMP3 is broken. The site may switch to an ad-based model. [BetaNews]
• No wonder music companies rushed to make deals with YouTube a few days back — they bought part of YouTube just before Google bought the whole company. One investor, Universal Music, had decried YouTube's copyright infringement, saying it owed "millions of dollars." This was one easy way to get those millions. [NY Times]
• Sony says its battery recall will total 9.6 million batteries and cost the company $429 million plus lawsuit costs. [Washington Post]
• Internet Explorer and Firefox both launched new versions, and tech blog Gizmodo says Firefox wins. Users already discovered a vulnerability in IE7. [Secunia]
• Business 2.0 says AT&T's purchase of BellSouth is all about the wireless. [Business 2.0]
• What's the Time Warner division making money while AOL spends it? Time Warner Cable, which just filed an IPO revealing its sweet, sweet profits. [Fortune]