This is one of those stories that sounds like perpetual motion, except it's now been verified by a team of engineers, headed by Dr. Peter Jansson at Rowan University. They BlackLight process uses a catalyst to create a Hydrogen molecule that has a lower energy state than normal H2, in a process they call "between chemical and nuclear" they are able to extract over 100 times the energy from Hydrogen than would be extracted simply by burning it.
So the scientists at Rowan were able to verify the claims, although they have no explanation for how it works, it defies standard physics.
The one thing that is not really clear, is that the BlackLight process uses a metal catalyst that needs to be processed, which as I understand it isn't how catalysts work. A catalyst doesn't get used up in a process, it merely faciliates chemical reactions. So the other question is how much energy does it take to process the catalyst for the reactor? If it's more that you get out of the reactor (which I imagine it is) then the reactor becomes more of a storage device than an actual fuel source as they claim.
http://earth2tech.com/2008/10/21/blacklight-validates-physics-defying-hydrogen-power/