I like that Trek. If it fits, and if it really has been unused, I think the price is reasonable. I paid slightly more for a 1995 Trek 850 last summer, and it was well-used. It had a new chain, front derailleur, and cassette, but everything else was circa 1995. Then I put my own choice of tires, grips, and pedals on (which I was always going to do anyway, with anything). I ride it more than any of my expensive bikes now.
Most of all, make sure it fits.