Last year Amazon had trouble filling orders of the then-new Kindle, so eBay took over and prices rocketed to $1,500. This year, same problem. Amazon says orders for Kindles will take 11-13 weeks to fulfill (which is, we believe, when they will launch the Kindle 2). So you aren’t getting one by Christmas directly from Amazon.
But eBay and Amazon stores have them for sale. New ones are going for as much as $975 (some are less) for buy it now. The market price for used ones seems to be in the $700 range, but some one is just $429.
I saw save a few dollars and wait for the new one to come out. You don’t want to be the guy who’s reading the old model on the plane.