I got a reply to the email i sent the DVLA about this site, this is taken straight from the reply
Dear Mr King
Thank you for your email received on 3/3/11. Your email reference number is 572966.
Thank you for your email about a website that appears to be offering full driving licences for sale and for the information that you have provided the Agency.
The Driver and Vehicle Licensing Agency (DVLA) is very concerned over allegations that individuals may be able to obtain a driving licence without having to demonstrate competence to drive. This could have serious road safety implications and also raises concerns about identity crime, should such documents be obtained in false or stolen identities.
DVLA takes the integrity of its systems very seriously. Genuine DVLA issued documents employ sophisticated physical security features to make them very difficult to replicate, allowing counterfeit documents to be identified more easily. To keep pace with threats to the security of the driving licence, DVLA launched in June 2007 a new, highly secure polycarbonate licence personalised by state-of-the-art laser technology. The new licence contains a variety of new security features, making it amongst the most secure documents in the world.
Internet based criminality is very difficult to combat effectively and the police service is the only organisation within the UK with the skills and resources to identify and take action against those behind such website's. The intelligence that you have supplied to us about the website has been passed to the Police for the appropriate action to be taken.