Another First Flute Question - Reputable dealers, new v used

[canoeWest]

EDIT: I've reposted this to the general hangout forum since it's not a question about basic flute technique. Link:
http://www.fluteland.com/board/viewtopi ... 7&start=0

I'm an adult beginner at the flute (I'm a decent saxophonist so I'm not a totally beginning musician). I've been learning on a borrowed YFL-225S but I need to give it back and I'm thinking I'll buy my own instrument. I've only been playing for a few months, so I don't want to commit to anything too expensive.

I've been looking online for a good deal on a student Yamaha instrument. I've found new YFL-221 models for what might be too good to be true prices:

$549 from Kohn Music Store through Amazon

$470 on ebay - http://cgi.ebay.com/BRAND-NEW-YAMAHA-YF ... 3f0ac0d2a9

If people are selling what they call brand new YFL-221 flutes for these prices, is there something fishy, or is this reasonable?

Another alternative I was considering was getting a used YFL-225s from Tim Moran Woodwinds. He sent me the following description of his used flutes:

I replace only the pads, corks or felts that are worn out. I clean, but do not polish the keys and body. Occasionally I buy a used flute that needs a complete overhaul before it can be sold. Most times they only need a few pads, corks, etc. In either case, the flute plays great or it doesn't get shipped out of my shop. They come with a one-year warranty, just like a new flute.

For this he charges $350. This seems like a good deal, especially if he stands by his work but I don't see a reason to pay $350 for a used instrument if I really can get a new one for $470.

Thanks for your help!