I bought one of teh magicshine lights from dealextream just before xmas (end of November), it turned up mid Jan. But its one of the most reasent batches, and i can confirm after a full strip of it (right down to the LED driver its much better than the early reports and some reviews on the web.
There was no issues with stray swarf, and there was also thermal paste in all the right places.
Light out put is closer to 600-700 lumins but i think thats due to the basic reflector and lens. There is a fair bit of light bleading off the edge of the beam which will drop the lumin output as there is no direct cut off.
I've used it twice now on off road rides and about 10-12 times comuting, all of the time its been in the rain there has been no sealing issues, and its performed very well on the off road ride, however i have just put an order in for another (helmet mount version), which i'll prob mod the reflector to turn it into a spot.
For less than £50 its an amazing deal, and i can t fault it – for your mates £100 budget i'd but two and get a Y lead (dual up front) or 1m extension lead (for helmet mount)- both avalible on ebay.