Snuffleupagus, I've ridden that bike (a slightly older version thereof).

I think $75 is quite reasonable considering the level of componentry on it and the fact that it's a good steel frame.

A rear derailleur would run maybe $10 at a local bike-co-op so it wouldn't take much to get it running. BTW: I thought the Karakoram had a replaceable derailleur hanger...? Not on the 97 though?