I bought a few M16 kits back when they were $199 and at that time they were a good buy. I built two M16 clones (M16E1, M16A1) and an XM177E2 out of them and am very happy at the way they turned out. One of the kits I got looked as though they hacked up a brand new rifle, one looked like they cut up a freshly refurbished piece and the last one had the rode hard and put away wet look. All the internal parts were in excellent condition on all three kits.
But, for five bills, I would pass on these and I would spend my dough on one of the new Colt clones of the venerable M16.