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He's ripping you off on the shipping. I did a quick check. Boxed it will be around 30x24x16 and weigh around 40lbs - UPS quotes $63.37 insured to $800 on 2 day shipping from Scottsdale to Albuquerque, on eBay he quotes $168.04! That is if he went in and paid counter rates, you get a discount linking your paypal to a UPS account so he probably has a higher mark-up.
Do not feel bad about canceling this transaction. Email him explaining why you do not want to continue. If he files a unpaid transaction complaint reply stating your reasons why. eBay does not tolerate over-inflated shipping charges.
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