I just bought an item like this last week but it was 128MB (cheaper). I got it for USD$80 including shipping. Thats about average, since they are worth around USD$130 (before shipping). Your item goes for around USD$175 (in the shops), in my country anyway.
These things are all over Ebay, even if you loose, you can just bid on another.
What I did, is I set up a BID GROUP, where I was bidding on 30 of these. I lost around 20 before I won one, and the rest were cancelled (thats how BID GROUPS work).
One thing to watch out for with these MP3 USB drives, is functions and extras. Make sure you only bid on the item with the most stuff. Like, free FM functionality, voice recording, etc.
I think I got ripped off with mine. The title of the item clearly said it had 4 in 1 functionality, but when I contacted the seller, he couldn't tell me what all 4 functions were. I might have a case for Ebay Fraud Protection if I am not happy with the product.
Functions that most 4 in 1 USB drives have:
* MP3
* USB HDD
* voice recording
* FM radio
Mine had no FM radio, but the seller still called it 4 in 1.