Thank you for all the comments! Regardless of anything said, I am going to go see her because i think it will be fun & educational, it's all set up - and really - you learn a whole lot more when you are there.
My friend with a lot of experience will probably ride her first to get a good idea. He also isn't afraid to jump or ride anything, so we can see her coursing in person.
I personally will start at the walk and not proceed to any level I don't feel completely comfortable with. Judging from the feedback here I'm guessing that will be walk, trot and a little canter. Unless she is handling very well and I feel super comfy, I won't try a x-rail and if I do it will be at the trot. Seems unlikely though.
Not everyone played the price game, but I'll revel the asking now. They are asking $7k but admit they are negotiable for a good home. I made it clear they would have to come down before even posting this thread, and now I'm even more wary. Yes my city is RIDICULOUS when it comes to all horse expenses... We get higher salaries here in general but still, it's a little crazy.
Realistically - before this horse I was looking for an "extra special insider deal" for free or like $1k or less (almost came close to getting one but it didn't work out).. (p.s. not free from craigslist, but free from a well vetted source.. we have a lot of rich people here who more care about a good home than money)
But if I'm admitting to myself I'm willing to pay a little more and as kittenkittenkitten points out - there may be other options. You may not have heard the last of me asking for opinions... hope you don't mind :)
Regardless I will post an update when i see her though!