TS,
Although the replies may sound harsh, you have to realize one thing - They are answering your question: " 2nd hand Canon EOS 450D at $700. Should I buy?". Their answer is NO. It is not worth it, and is 1 generation older at this moment, and will be 2 generations older in a few days when 550D comes out. They are also saying NO, because the camera is 18 months old and average life of modern electronics is not as long as those mechanical film cameras.
I know it is your money, and I respect your decision ultimately. But I just want to remind you that the playing field is level now, in terms of technology, and pricing has indeed come down a lot. Performance between brands are more or less the same. The thing to watch out for is older versus newer technology. Though harsh sounding, the advice from the other CSers is to look at other options. They have gone down the road before. Sure, you do not have the experience, but they do. You asked a question, and they answered it. You may not like what they say but take those advice into account. But ultimately it is your decision. Go ahead and buy it if you so wishes. And I really wish you well and welcome you to the community.
If you still want my opinion, it is simple:
1. the 450D body at 700 is definitely not worth it. 18 months old, extended warranty is unknown. If the extended warranty is from a 3rd party, I can tell you it will be a huge hassle trying to get any sort of warranty work. Also, 550D is around the corner, it is already selling in China. So this will push the price of 500D down and 450D down even more. Maybe you should wait a couple of weeks to see how the pricing go, when a flood of used 500D hits the market.
2. If you want to stick to Canon, it is fine. Everyone has their preferences. Thing is, if you are so tight on budget, maybe you want to wait a while more and save up a little more. Get a new one if you are unsure of how to check a 2nd hand camera. Why? if you get a camera and it breaks, you will feel a lot worse, especially if you have to fork out money to get it fixed.
3. You still have to buy a lens to use on this particular body. Meaning, you have to pay more. And to save money, you have to buy a used lens as well. What if that lens has issues, or if it breaks? Personally, I will never buy used lenses unless they are from people I know and I know they take care of their stuff. Unless it is a very cheap piece of lens I might take the risk. But reading your posts, it seems you can't take this risk as your budget is tight.
Summary:
You should not be looking at the price and cost of the purchase. You should actually look at the bigger picture, which is the Total cost of Ownership. If you think properly, buying a new set with kit lens for you may be the cheapest in the long run. Unless you know what you are doing when you are buying 2nd hand, I advise you to stay clear of used stuff.
Anyway, these are just my advice to you. I've tons of experience buying used stuff online in USA, China and Singapore. I've had good and bad experiences. But all my purchases are calculated risk. If your budget is as tight as you said it is, you are very risk adverse and you have to be really careful.
Good luck in your hunt.