Rock Jock,
I am sitting here looking at my LNIB K40 in nickel. I just picked it up today. I was not even looking for one. If this one has more than 1 box of ammo through it, I'll eat my shoe. I paid the same as your father. I think it's a great deal at least here in Mass, where we can't get them unless they are made prior to 10/98.
I saw an MK9 go for $500 andit had a lot more use. So, my opinion, yes, it's a great deal.
I don't know what holster to recommend yet, but I will start by looking for a Fobus paddle holster ( a rotating one if possible). I have two and they are great.
Today I shot 50 rds of Wolf semi-wad, awesome stuff. I like this for my Makarov as well. I also shot about 10 rds of Federal hollow points. They all fed, but the accuracy stunk. At 15 yds, the wolf shot a 1.5" group and I couldn't get the federal under 4-5". Maybe it's me, it was the first 60 rds.