Is this a good deal?

I don't know anything about the particular camera, but gut instinct tells me that a 5MP camera that is that inexpensive will not take the greatest pictures. I'd be inclined to look for a lower resolution but higher quality camera (and probably more expensive).

It would really surprise me if the quality of this camera would make me "trade up" from my 2MP carry-around camera. When you put more and more pixels on a small sensor, you are asking for more noise.

However, to put this in perspective, I'm waiting to see what the new Canon 20D looks like (next month?). This is a $1500 DSLR so it's not quite the same class.

As far as batteries go, I like the lower-end Canons that use 4 AA batteries. It makes for a heavier camera but 2000+mAh NiMH batteries are relatively cheap and you can always use alkaline in a pinch.
I honestly would stay away from this one

1) uses SD cards, I would try to find a cam which uses CF/CFII so you can go for bigger (and cheaper) storage solutions
2) it is a refurbished unit
3) the battery, you really want a cam which uses regular batteries, in case you are 'in the field' and run out, you can run to a local walmart or whatever, and you are good to go again.

but to be fair, I couldn't find any bad reviews, and that is a great price if you are comfortable with refurbished camera's. Here is an example review, most of them were like this:

Check out the forums if you want to find other owners.