Here's a taste of things that it seems i'm constantly connecting to.

amarok(29929) DNSSD::RemoteService::resolveAsync: DNSSD::RemoteService(0xa1db2e8) :Starting resolve of :  "so i herd u like mudkipz??"  "_daap._tcp"  "local"
amarok(29929) DNSSD::RemoteService::resolveAsync: DNSSD::RemoteService(0x9d0bda0) :Starting resolve of :  "ERECTION COLLECTION"  "_daap._tcp"  "local"
amarok(29929) DNSSD::RemoteService::resolveAsync: DNSSD::RemoteService(0x9d79d60) :Starting resolve of :  "619_PW"  "_daap._tcp"  "local"
amarok(29929) DNSSD::RemoteService::resolveAsync: DNSSD::RemoteService(0xb25fac0) :Starting resolve of :  "Chris Chen’s Library_PW"  "_daap._tcp"  "local"

It may be something totally normal but I haven't found anything about it on google. What really is going on? Does amarok  have like a public server to check against people's playlists or something?

Amarok uses name resolving to discover daap devices. There seems to be some boxes perhaps running iTunes in your network. Amarok will try to connect and show the shares as collections. Not weird, but positive, indicating that it works.

Greetings
m0nk

very cool! But what exactly does that mean? that I can view and/or trade music with these people without them ever knowing?

You should see their collections in Amarok, although I suppose that the shares are secured by passwords. Take a look at the collections ending with _PW. The shares will stream the music, so this is not a share to copy files from/to. There are of course other applications than iTunes, like mt-daapd, a server to share music using daap or some NAS Systems which have builtin iTunes support (how they call daap there).
Well, I don't have a indeep sight on daap protocol, so perhaps you should use the search on this forum, google after it or check Apple website.
Check this topic.

Greetings
m0nk

So I told my friend with Itunes about this and they knew exactly what I was talking about. We just streamed songs from one of the same shared daap servers. However I don't see it on amarok anywhere. I wonder if I have to explicitly add their collection? I looked everywhere and i'm still unable to find any information about the subject

Check the link, I've posted above. It's hidden in "Check this topic".
Perhaps you must install some packages, but I don't know which distro  and which version of Amarok 2 you're using.

Greetings
m0nk

Yeah it seems like exactly the same issue as me, except that I have nss-mdns installed and my /etc/nsswitch.conf is set to look exactly as described here http://0pointer.de/lennart/projects/nss-mdns/

I'm using Ubuntu Jaunty Jackalope and Amarok 2.0.2. I will keep looking for answers and if I find anything i'll post it. 

Tested it with .local?
ds@morpheus:~/Download> getent hosts nucleus.local
192.168.100.30  nucleus.local

Beside of that, I wouldn't expect to much from Amarok 2.0.2 built for Ubuntu 9.0.4.
Perhaps I'll test it later with a Windoze box and iTunes 8.x.

m0nk