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Random thought: Does she have WiFi at home? Could this be a "drive-by downloading?"
Yes, she does- and that is one of the thoughts. However, the letter specifically says that she made the songs available to other people in a publicly shared folder, so that doesn't really fit the "drive-by" scenerio. It'd be hard for them to justify considering each track worth $75 if it was only downloaded and not shared.

I think the more likely cause of this is a mis-ID by the ISP or someone up the chain (as was mentioned). Still, if they are going to send you a letter demanding you pay over a million dollers, they'd better make sure they get the names right.
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-Jeff
Rome did not create a great empire by having meetings; they did it by killing all those who opposed them.