I think when you have a high interest item like that, you KNOW it's gonna get bid up, so the smart thing to do is start it at 1 cent and get a pile of bidders to follow it. Look now, it's up to $1.25 and it already has 8 bids, that's what you want.
Some people are boneheads and would start the bidding at $400, which would be stupid IMHO. For instance like this guy's ended auction -
http://cgi.ebay.com/Xbox-360-package...item3a596ea78d
I guess doing that, you won't sell it for a lot less than you want, but nobody is ever gonna bid on that starting that high and you're never gonna sell it.