I bought mine brand new at Harbor Freight for that much, and was able to purchase the 2 year service plan with it.
It's not as nice as a Delta, but it's working well for me. I've think I may have seen a jet on Craigs list several months ago, but it was around $300, and didn't last long. Most of the lathes I see on CS around here were either not in my price range (about what yours is), or just weren't something I'd want.
I'm happy with mine. It's got enough power, and serves me well enough that I can use it. There are some accessories that I'd like to get when finances permit, but in the mean time I feel fortunate just to be able to turn pens.
With the Inside Track Club, I bought my lathe for $150 plus tax and the service plan. I had initially had the variable speed model with less power, but had to return it a couple times and eventually went with the higher model. There was a thread recently about HF lathes, and this model was mentioned by a few.
If you can get a better one of Craigslist great. I wish I could have, but I still haven't seen anything that would compare for the money.