If you know what to look for (frame materials, frame size, quality of gearset, quality of brakes, quality of wheels) and what all the jargon means, then you might get more for your money at ebay.co.uk. I saw this: http://cgi.ebay.co.uk/RALEIGH-AIRLITE-200-ROAD-RACING-BIKE-52CM-ALLOY-RACER_W0QQitemZ330112988843QQihZ014QQcategoryZ33503QQtcZphotoQQcmdZViewItem Raleigh Airlite 200, which costs about the same as the bike you mentioned, with a good step up in some of the key components. And that was just the 2nd or 3rd bike I saw on there. As you can see, this bike is being sold by a retailer with a shop, and being sold as new, so maybe that is easier than buying from an individual (i.e. beinga ble to find the right frame size for you, being able to track someone down if something goes wrong with your order).
But, if you don't know much about bikes and are just getting started with all this, I would not recommend you buy anything off the web, sight unseen.
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But, if you don't know much about bikes and are just getting started with all this, I would not recommend you buy anything off the web, sight unseen.