I'm not rich, I'm careful with my dough, but don't make a practice of buying refurbs. I bought one and it turned out to be something other than as represented. Buy.com sold me a Sandisk Sansa m250 MP3 player "refurb" and it wasn't working right from the start. I won't go into the story of how I got a replacement, but it turned out that Sandisk does not have a refurb program. This means that the unit I got was _certified_ by a 3rd party to buy.com, who passed it off as a refurb. Upshoot of this is that Sandisk is not required to service the buyer.
I have often considered refurbs but of course the price is a big factor and almost always the price I've seen wasn't low enough for me to risk the item. Often they are OK, I'm sure and there's some kind of warranty, maybe the same as for new, but I figure this:
---> Many of the items were returned because the original buyer thought the product wasn't OK. You have to ask yourself "how confident am I that the person(s) who checked out this item did a thorough evaluation and testing procedure on this item and found out what was wrong and then fixed this item before returning it for sale?" My intuition tells me that very often they do a cursory analysis and you wind up with substandard goods. I pass.
OTOH, I bought an iRiver H140 "refurb" that has turned out to be great. A 3rd party who I think was retained by iRiver was selling literally dozens of H140 refurbs virtually at once on ebay around 3-4 years ago, and the auctions were closing at well below auctions for "used" H140's on ebay. They came with a 90 day warranty, which most ebay deals for used merchandise don't get, of course. The H140 (and H120) were no longer being manufactured and had features unavailable in currently available devices, features I wanted. I figured it was a no brainer and I've been completely happy with this purchase.