I would have assumed you were joking. You spend WAY too much time in chat rooms!

He claimed to have made a muon generator for $500? And you took him seriously?! Ok- a short lesson:

What is a muon? A muon is a lepton, (as is the electron), with 207 times the mass of an electron.
Leptons come in 3 classes- electron, muon, and tau.

Where do they come from? High-energy protons strike nuclei, and create pions, (mass=270*mass of electron) - pions quickly decay (in about 26ns) into a muon and a muon-neutrino.
the muons created have a lifetime of ~2.2microseconds, a muon with a negative charge decays into an electron, a muon neutrino, and an electron anti-neutrino. The decay products are dictated by conservation laws.

Many Muons are hitting you each second... they are created by the process described above from cosmic rays hitting the upper atmosphere.

So, making muons is not a $500 project some Yahoo yahoo can do... It IS a multi million dollar project that trained scientists can do: http://www.isis.rl.ac.uk/aboutIsis/index.htm

Now about muon initiated fusion:

By conservation of energy, the energy needed to make a muon must be greater than 107MeV- in practice MUCH greater. The energy released from D+D fusion is 4 MeV, thus each muon must initiate many more than 27 fusion events in its short lifetime in order to approach breakeven... (Rest mass energy of an electron is .511 MeV)

Muon aided fusion has been known for decades- the negative charge of the muon allows it to orbit the nucleus, its larger mass (207 times I think?) than the electron means it orbits much closer... this means 2 nuclei can get closer before electrostatic forces push them apart... This increases the probability of fusion. However, this has yet to be shown to approach breakeven. I HAVE heard it postulated that muon fusion might be useful as an initial spark in a fusion reactor.

Your chat buddy is ill, but not from radiation...
If it makes you feel better, Todd's et-tech idea is FAR more stupid...