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They use commercial IP delivery software, so as far as I know all that's left for them to do is to come up with an SE friendly "alternate" page.
IMO a page that's optimized for say Google will, with minor tweaks, work well with most other SEs, so there can't be that much work involved in this aspect.
The price mentioned was $800-900 for the first two pages, and $600 per page after that.
This is a small pond, and they're big fish, but if this is a reasonable price in the US or UK, I may consider ditching my doubts about cloaking.
Am I missing some important aspect in what's involved, or are these guys making hay?
I'd think if you even had rudimentary script install knowledge you could purchase a script and do your whole site for a whole lot less. It's not all that difficult and most of the firms that sell cloaking software support thier sites with ip addresses and general support.