WOW I am seriously surprised by the maturity of the people posting to this thread, I was under the impression that we did not have this name calling rant/troll type people here on the bike forums. but maybe I have been just proven wrong.
Amir, seriously do not worry about what you paid for it, it is of no matter. I purchased a specialized rock hopper comp frame with some manitou magnum R suspension forks for $200 (over ebay) little did I realize that a person just before me had purchased the same frame and forks for $170. Not to mention these are the same suspension forks which almost got me killed and are right now back with Answer Products awaiting inspection for replacement.
really it is a nice bike, and for a beginner in the mtb realm I do not see any problem with what you paid. life goes on and you'll be riding so have fun
as for the paint chips, sand them out with a high grit sandpaper (220 range) then apply some touch up paint (i.e. model car paint) or simple primer which you can get at any hardware store. this will stop the rust from getting much worse.
anyways have fun riding.