I'm currently looking for a beginner flute and I have my eyes set on a Yamaha. But with the terrible economy and the possibility that a college student might not have all the time in the world to learn, I'm not sure if I should be spending so much money on a "maybe".
Usually seen at 800 dollars, I saw a Yamaha flute for $170 at http://www.blujay.com/item/2010-NEW-YAMAHA-271-flute-open-hole-with-hardcase-13011100-3264015
Is this a ripoff or the real thing?
Now I have no idea what exactly is good, but I have reached a consensus that Yamahas are the way to go.
Can someone here give me some advice on what step I should take next? Thanks

A good rule of thumb is when you have to ask if it is a scam, it is a scam.

That doesn't look like a normal Yamaha case, nor do Yamaha flutes (from what I've seen) come with a plastic cap for the end of the headjoint. The price is also too good to be true, so chances are strong it's a cheap Chinese knockoff. Don't bother with cheap knockoffs.

A used Yamaha or Jupiter would probably be a good bet if money is a concern.

It's almost certainly a Yamaha counterfeit that's made in China. There's a lot of them for sale on eBay and elsewhere on the web. Genuine Yamaha YFL-271 flutes cost a lot more than $170 when new. You would do much better visiting a local music store and buying a new or used flute. If there's a problem with it, you have a local face to deal with.

<Added>

Also, here's a link to a Yamaha website that points out the problem of counterfeit Yamaha band instruments. Look about one third of the eay down the page for the srticle dated February 17, 2010 5:13 pm.

<Added>

http://yamahawinds.wordpress.com/category/flute/

Thanks so much. I knew it was too good to be true.
I think I'm going to end up buying a used Yamaha...after I save up enough money for one.

Thanks guys!

Yes, this has been discussed here before. Also have a look at this.
http://fluteragious.phanfare.com/4456433

You can get a nice used Yamaha 221 for around $300 usually. I used to carry like new one's for that price. You may find them over hauled and like new from a reputable on line seller. The new one's are no longer being made in Japan, so if you can find a used one that is made in Japan I think you would be better off.

I would also suggest you start to search for a teacher right now. You don't need to have the flute before contacting teacher, on the contrary, the teacher can help you in the selection. And once you get the flute they will help you get started in an efficient way.