That is definitely an oiled unit. As far as price goes, its not a bad price, though personally I'd try to negotiate down to 150. Like frank mentioned though, 8 years is a decent amount of time to be running a compressor. As far as being on its last legs though, I'll beg to differ on that one. If it were an oilless unit I'd be dead by now, but oiled units are hardy buggers, but more importantly they're repairable. So long as the pump has been decently maintained, e.g regular oil changes, draining the tank every now and again and the like, its unlikely there's any major damage, and the things you'd expect to fail, seals and the like, are replaceable.
Basically, whether or not you get it depends on how good you are with a wrench. I'd get it, but I don't mind ripping it apart to fix if something crops up, nor would I depend on it working like new