Is this deal too good to be true...

Sorry, looks more like another of those bait-&-switch scam deals that are curiously not illegal over there.
 
You might want to check this oufit out through the better business bureau
 
If you want to save some money but still have the security of buying new with warranty etc, and buy from someone a lot more reputable than one of these scammers, then you could try buying a 'Refurbished' camera. I seem to remember Canon having an official refurb store on Ebay (please correct if wrong).
 
If the price is lower than B&H or Adorama (see links at top of page)...I would be concerned.
 
Its tough to find a good trustworthy store out in NY! Ha I spent 4 months trying to find a good deal on my 30d and finally bought one off of ebay new from a store. Pretty happy with my purchase.
 

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