I was looking to upgrade from 35mm to DSLR and I bought my Canon Rebel XTi from an ebay store! I got the camera body, 1-18-55 lens, 1-75-300 lens, 1-wide angle lens, a case, extra 5 hr battery, 2 tripods, 1- 1GB memory card, 2-4 GB memory cards, 3 filters, cleaning kit, memory card case, a digital slave flash, car battery charger, and an extended 3yr warranty for $1200!
 

No catch on ebay. You can find really great deals or you can find people bidding like crazy on an item that is cheaper elsewhere. As others have said, it's all about shopping around and finding reputable sellers.

If you don't do your home work and buy from a bad seller, who will not send the item, or sends you a broken item, request to return it, insured and with tracking, and dispute the charge. If the seller says "no returns" wait for the green light from either PayPal or your credit card company before sending it back.

One BIG TIP: when buying BIG TICKET items, *always* use your CREDIT CARD to pay for it, not your debit card or bank account when using PayPal (an ebay company). Certainly NEVER use checks or Money Orders.

PayPal lets you dispute ALL payment transactions with them, but their service is a joke and it takes time if you file through them - 6 weeks average. You don't have other optons with debit card or bank account draft transactions.
However, if you paid by credit card, you can go to your credit crd company directly and file for CHARGE BACK. That is why PayPal doesn't really want you to use your credit card :) LOL but they have to offer it, of course.

Too many charge backs can put PayPal out of business, so it's in their interest to refund you ASAP once your credit card company is involved.
 

PS - got get the best average pricing of an item on ebay, select under the Search Options category "COMPLETED LISTINGS". This will show you auctions ended in the last 30 days that match your search criteria.

Good Luck! :)