You can't renew an extended AppleCare. The drive the guy is selling is a bit pricey. FYI, I've got an Hitachi/IBM 40GB "Travelstar" with fluid bearing (very quiet), 5400rpm (faster than 4200rpm drives) for $130 from GoogleGear.com. So, $200 is quite expensive for a 40GB drives...
Different dollars, Laurent...she said she's in Wollongong, hence she's talking $AU, you're quoting $US.
$200 AU for that drive is just about right, I think.
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