So people pay 0.001 BTC for every bid? You get 2000 bidders = 2BTC + the highest bid and you only need to pay 1 BTC.
Not a scam per say, you just need to get enough bidders
almost
but the winner don't have to pay his bid.
he got auction object - his bid, like 1BTC-0.2BTC=0.8BTC to winner
New auction is running, much lower amount.
http://freshdesign.ee/bitcoin/