Hmmm,that sounds tempting. I suppose it depends on the type of story and the site it goes on. A reputable site would (ideally) publish stories based on the newsworthiness of a product (meaning they'd publish the story even without the PR firm being the middleman), but I'm sure whatever contacts they have with the news site probably help a lot. Getting on a major, widely read tech news site for a startup I'd say would be worth that easily. I'm not going to guess how they do it, but if they can do what they've promised for the price they've promised, and it's all risk free, I'd say give it a shot.
prserve.com just quoted me sub-$1K for one story on a major tech media news site, pay only after the story goes live.
What I read from here so far makes the prserve deal a pretty good one, isn't it?