Here in the UK, I purchased 2 refurb macs relatively recently (both in proper packaging). A 12" Powerbook and a 14" iBook. Both had substantial savings, when bought together we saved around £650. However initially both were duff. The powerbook did not have tiger installed properly (a situation I was able to resolve myself), the iBook required a return as it was DOA (harddrive failure).
This was not good as it was my mum's new computer, after persauding her for years to get a mac she finally crumbled. Not a great start for it to die within 2 minutes of turning it on.
However when the iBook returned it had 20gb more hardrive (100gb) and 512mb more RAM (1gb) then ordered, so I was well chuffed.
Mum is also thrilled with the mac, cannot recommend enough getting your parents onto OSX, much easier for her to manage than windows.
I would deffo buy refurb again.
I love my 12" Powerbook BTW, which I use everywhere and at home with an external screen (brilliant way to go about things!). My wife now uses my older 17" Powerbook and she loves it too.
Gotta love switching people! We all have .mac family as well, which is proving pretty cool.
Ramble over!
Kev