New to machining looking at 3 in 1 lathe, help

Hi
I haven't had much time to read up about the finer points of what to look for.
http://images.craigslist.org/00P0P_8y1P4BPkI4k_600x450.jpg
first is this worth $350
its coming from a prototyping shop so no idea what shape it's in.
i don't have any idea what to look for other than making sure it looks and feels right

thanks

Chris K