Not sure where you are located as your profile did not mention it..here in CA I purchased one in Jan 2007 for $400..no box or papers..in great shape..no holster wear or muzzle wear and a very faint line on the cylinder..the price you quote sounds like a very good deal to me..all5x
I sold one on Gunbroker about two years ago for $600. It was mint in box. The 65 Ladysmith is very hard to find and is in high demand. It's a great carry revolver. That is a great deal! Buy it.
I picked it up yesterdy and put some Hogue Rosewood grips on it that I had for my 617. Took it out to shoot today and it sure shoots great. Makes the 7th smith I have bought in the last year!