For 870, I think that's a bargain. I have the 70-200 VR1 - it's a phenomenal lens. I use the lens mainly for weddings, but it's also great for portraits. It focusses very quickly, is unbelievably sharp, even wide open, and has a beautiful bokeh.
Before making the purchase I did wonder if I should save my money to put towards the VR2. But that question disappeared as soon as I took my first shot with the VR1. I see no reason at all to upgrade, and if mine died I'd search out another used VR1.
As others have said though - it all depends what you'll use the lens for. If you mainly shoot landscape then forget it. But if you shoot people then I doubt you'll be disappointed.
Do bear in mind it's HEAVY! I work with two D700 bodies. This lens will be on one of those bodies for most of the day, and believe me, after carrying it for a few hours you're definitely gonna know about it.
Hope that helps.
Iain