Nope, didn't see that 20/20 last night... too bad, sounds like a good episode too.
Anyways, yes, i've run into counterfeit money. LOTS of different kind. Some are extremely high quality, and it's almost impossible to tell teh difference visually. Then there are some crappy ones that you wouldn't even fool the blind.
Hm, yeah, i've known of people that tried using them to buy drugs... not very smart though, since the person you're buying drugs from normally knows you pretty well. Unless you're buying crack on street corners.
But it's hard to move large denomination nowadays though. Even bars, which use to be the easiest places to use counterfeit money, now have blacklight that can catch the counterfeits (i've heard of some really high counterfeits that can actually fool those... this is Cdn currency, i don't know if USD have the little dots on the bills to stop the counterfeit).