Yes, known scam!
Don't even pay attention to it.
They wil send you a fake money order, then make you cash it, and send some money to a "shipper" (fake).
That is until the banks finds out the check if fake, and they make YOU pay it back, not until you already send the money away.
Big TIME scam, that is mostly done with cars, but it seems some of these guys go smalltime too.
Some fun to read info here: http://www.craigslist.org/about/scams.html
Mickel de KD5FJV (big-dutch.com)