the link to the video is http://www.youtube.com/watch?v=CgJ0EpxjZBU
i waa wondering if it can really light a match on fire or pop a balloon or if it is just a hoax

well yes, it is true, it depends on how powerful the energy source and how much the diode focuses the laser. I work as a Dj and before parties and such, me and my friends play around with the lasers in the disco. If you focus the disco laser in a single beam you can light your cigarette on it just by holding it into the beam. Tried it, it works.

Yep DVD burners have a visible red laser diode in the range of 150 to 250 mW, which is easily enough to cut black electrical tape, pop balloons, and light matches.