Yes, you need air down the withers. :)
1000 Is way too much. It is a nice saddle, but here are the things against it:
It's dark oil. Dark oil is waaay out of style--if she tried to trade it in or sell it anywhere else, she would have a horrible time of it.
It certainly doesn't look worth 2600. Not saying it looks cheap, but I can get a brand new billy cook for 2600, and Circle Y's are not billy cooks, lol!
I would offer 750 (I plaid 750 for a used dark oil, gorgeous Blue ribbon show saddle, full tooling... man, i miss it! lol), if not less. It is a nice saddle, but it is not worth more then 500, although I think if you offered that you would insult your BO. If you really like it, get the number off of the saddle, and find it online for much cheaper. Also, don't get me wrong, it is a nice saddle that will last for years and years--it's just that dark oil is out and doesn't look like it's going to be coming back in, so the price of them is muuuuch cheaper then a light oil saddle.