Short answer: Those stories are true
Bangalore's infrastructure hasn't been able to keep pace with it's growth. Most of the IT companies (assuming you work in the industry) are concentrated in certain areas ("Whitefield", "Electronic City", "Koramanagala" etc.). If you can live and work in the same area, you shouldn't worry too much about the traffic. Most of these areas have enough malls, cinemas, restaurants etc. for urban living. I don't believe they have enough open/outdoor spaces though.
Other problems with traffic here, apart from insane commute time, are that most drivers/riders chose to use the horn excessively, they are frustrated (choicest of abuses for the smallest of mistakes), quite a few two-wheelers regularly ride on footpaths and general disregard for pedestrians (because everyone is in a hurry), in fact, a lot of roads don't have footpaths because the government had to widen the road to accommodate more traffic.
Personally, I live in the old part of Bangalore used to work for a company 26 km away (in Whitefield) and my commute time was around 1.5 hours in the morning (early morning to avoid traffic) and 2.5 to 4 hours in the evening (peak hour) using company's bus. I quit my job in about 6 months, and chose one which allowed me to telecommute.
Here's an article that came out in the newspaper a A week old article about the current state of traffic in Bangalore
You have been warned!