Thanks for the replies, I think jimc101 hit on my main concern about the components being worn out. I'd expect a 1999 bike to need a complete overhaul ($200) unless its been meticulously maintained. Reviews of this particular bike look good, and it's my size, but at the asking price plus $200 overhaul I could buy a new $600 bike.
EDIT: V-brakes are actually desirable to me, as I am familiar with maintaing them. My level of riding won't require disk brakes for quite some time.