On the one hand, the components seem to have all the right numbers, and it does include a DVD re-writer which is expensive.
The other thing to remember is that you are paying to have it built and for someone to provide on-site support...always expensive. Plus you are getting the OS (and other software?) in the package.
On the other hand, for that price I would want a slightly higher spec graphics card and a seperate soundcard (the spec says it is using onboard sound...in other words it's part of the motherboard)
Do you really need a DVD re-writer? I would ask how much it would reduce the price to drop that...they cost about £150 for a basic one!
Also the full tower case...a midi might be cheaper and easier to find room for.
On the whole it looks reasonable, and as for the personal recommendation...that's down to whether you trust the person's judgment or not. If, as you say, it's a local place then it's always handy to know how to corner them with a complaint!!