A lot of internships are like this, though - mostly in areas where people will do this kind of crazy to get the job in the end. I've heard mixed things about trying to get decently paid internships in this economy, too. On the one hand, companies have laid people off and might be willing to take on an intern they don't have to pay benefits, but on the other hand, an intern is oftentimes and expense they don't have to be bothered to take if they don't have the money.
Sometimes, when it comes to getting the credits, you just want to be able to do something that you might enjoy. I've applied to for a ton of paid internships for this summer, but they are really ing hard to come by. I have an unpaid one lined up just in case, but this is a crazy climate to be looking for this kind of position in.