Good enough, I guess . . .
Well, this engine came in today. Now, I'm not a **total** foo' with eBay, so I saw this coming. For $50, I think it's still ok. To avoid any misunderstanding and bad rep with this seller, I'll keep the auction link private.
Although the auction claims NIB, the shaft has been cut, there's gasket deposits on the exhaust port, and one of the backplate screws shows signs of tweaking, it looks like someone's tried to mount it and has been inside.
Fortunately the cut fits my flywheel and clutch, and it looks like it's never been run, but of course I will be breaking it down before first startup. I was mildy dissappointed to find the carb has no low speed adjustment, but I think it will be fine. All in all, it's still a new engine.
This is just a heads up for some of the newbies out there - it's been said many times, unless you're willing to take the risks, eBay is not the place to shop for engines. This engine retails from $149-$169, so for $50 + shipping I think it still worked out. All in all no complaints so far.