Good iPod trade deal??? need to know fast!!

[Winstonp]

I have an offer to trade my 1GB ipod shuffle for:

a 20GB 4th gen ipod.+box etc...

it works perfectly (so he says...im going to test) but there is one catch!
the dock connector has a small chip...

http://airblogging.com/blogger/20050406/df2e157ffd.jpgSee pic (http://airblogging.com/blogger/20050406/df2e157ffd.jpg)

worth it even to resell and make profit?

[sjpetry]

If it works it's a great deal. Do you know this person or is it over the internet?