I have my doubts that it is a satellite signal, because if someone has a "leaky" box, it should only be leaking/transmitting the signal that the box is tuned to. That's the reason for the question as to whether Kmoser's friends can change channels, or if they can only get what the person who is the source of the signal is receiving.
I think it is much more likely that it is a cable signal, and that somewhere there is a piece of equipment or cable that is leaking the signal. They are picking up the lower analog channels on their rabbit ears, instead of needing a cable for the antenna input. Think about it, with a satellite signal you must have a converter box, and the signal is changed in the box and sent to the tv. With most cable systems, you don't need a converter box for the basic analog channels. You just hook the cable up to the antenna input and with the tv tuner you can access any of the analog channels. It would be interesting to know if they have their tv's set to "cable" or "antenna", if they have that capability.
Kmoser, if you can get any signal like they are getting, a better antenna might help you improve the signal, and a powered set of rabbit ears might improve the signal. However, if you can't get anything now, I don't think I would spend the money. Tell your friends to enjoy the signal while they can, because sooner or later the cable company will find the leak and fix it. The problem really should be reported, because the leak is causing interference, and could be causing reception problems for those using other signal sources, like people who actually have satellite dishes. The FCC requires such sources of interference to be fixed. In another city our cable company had a van that regularly cruised the streets looking for problems like this. But I won't tell.