Well, fellows, heres a follow-up report.

I called the guy back, and ended up buying this gorgeous rifle, mounts and 6 boxes of ammo for a good deal. (2300 cdn dollars). He was a real good guy, and offered a sweet deal.

I now have to select a scope for this little gem. I like the S&B 1.5-6x42, but it might be a bit big. Perhaps the 1.25-4x20 would be better?
I think I'll take it toa smith and have a recoil pad installed too. Its reallllly short for a tall guy like me.
I'm going to keep my eyes out for a SXS Merkel, and maybe my wife will claim this one Eh?