These addresses are known as Vanity addresses.
You can create one yourself, using VanityGen.
Here's my address: 1HeAddU7rbzWroCdMukx1W1H6ECGHCX8sf
Created it through VanityGen.
No, it is not a vanity address. A vanity address has a private key and can be used to receive and send Bitcoins. That is a totally bogus address with no private key. All Bitcoins sent to that address will be lost forever. There are a lot of them. People have written a lot of stuff in the Blockchain using this method.
Here is one I did:
http://blockchain.info/tx/bf40e4a1c2546747bc800a085e7145d921a9f402aaf4040c155ff5d0df9cc999Which reads:
11When1DieBuryMeDeepLayTwoXVEY5jv 0.00000001 BTC
11SpeakersAtMyFeetAPairofXXTyrHor 0.00000001 BTC
11HeadphonesonMyHeadAndXXXXYUSvnd 0.00000001 BTC
11ALwaysPLayTheGratefuLDeadWdq4Xo 0.00000001 BTC
0.00000004 BTC
I explain it in this thread:
https://bitcointalk.org/index.php?topic=1168745.0;allAnd there are many other threads on the subject.
... people do not have the private key for that address, so those bitcoins are theoretically lost.
No, not "theoretically lost", they are lost
forever.