I do not think this is just smoke. I predicted a while ago that Orion Martin would be one of the two UDFAs to make this team and now they're giving him the opportunity to prove his versatility. That can only be a good thing. If he proves himself versatile enough to play OLB, ILB and be a Special Teams guy...he will have nailed a roster spot.
Frank Beamer can't say enough about what his leadership meant to the team his senior year when he was voted captain and was All ACC. He was a walk-on transfer from Norfolk State, and immediately started winning all kinds of team awards for hard work, practice habits, off field stuff, etc.
He set the DE position record back in 2005 for the fastest 40 time with a 4.52. I don't know how much he weighed back then but if he's moving to ILB they could scale him back from the 260+ pounds that he is to a more trim 250 pounds, and perhaps he will go from a 4.70 guy (his time at the VT Pro Day) to a 4.60 guy. He has it in him to get faster, because he was faster before.
As a Defensive End he was a tremendous run stopper that was very competent but not explosive as a pass rusher. Also he was asked to frequently peel off and cover running backs in pass pro, and supposedly only 19% of the passes that went into his area ever got completed. As far as his being a run stopper goes, on run plays the tailback only gained something ridiculous like 1.5 yards every time he was tackled by Orion Martin.
You take that skill set, great run stopper with good pass pro instincts, the ability to get smaller and faster, and I think you have a good formula for a guy moving to 3-4 ILB.