Yeah it does. I disabled that feature on mine though, because I like to make sure it's matching my sorting criteria. When I first installed it, it was pulling all that info, and I thought "Hey that's pretty cool." But then I went to go burn some songs to a CD, and it was pulling the album cover picture, and the database file with it. I didn't really like that, so I dissabled it.
I don't do much downloading music though, so I guess it's not something I'd need much of. I rip with CDex, and it generates the ID3 tags automatically. Some of my early rips though, I neglected to have that enabled, but it's easy enough to to a mass ID3 tag edit with WMP9 so I can sort it how I want it sorted.
Some people are retarded when adding stuff to those online databases
Like my Metallica, some of the songs would have Metal for the genre, and some pop ... ON THE SAME ALBUM! And Dream Theater would either have Other, Rock, Pop, or Progressive. There just seems to be no standard. So I just prefer to do my own thing