When it comes to those no-brand ebay items, you should ALWAYS look at the youtube reviews before purchasing.
Considering the price, I'd say it's not a bad deal. Just be realistic with your expectations though. It's certainly no iPad replacement. I once bought one of those "MID" tablets and they aren't very quick at all. The touch screen interface isn't that responsive and it's a hit or miss whether you'll be able to use the Android Market, which is a pretty important component. Also, I had a funny incident where I plugged in the tablet to the PC via USB and that was the end of me having a functional tablet.. I'm guessing the internals got fried or someting.
Just remember, you get what you pay for. Having had the experience I did, I would never get one in that price range because it doesn't meet my standards. 800x640 isn't too shabby considering the size, and 1.2ghz is decent for a tablet. Weak CPU = lack of responsiveness. Make sure it's dual core though. I can tell that this one isn't because any seller would be flambouyantly mentioning it.
If it has the latest flash, that's good, so you'll hopefully be able to browse most of the web. Android is a flexible OS so you don't have to worry about software capabilities much, but hopefuly the hardware enables you to play games decently and watch video and flash content smoothly.
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