Hi Im Totally New To Embroidery And I Would Love Your Advice!

Konnichiwa! :)

I've been in the business for more than 10 years and the first thing I realized is that 3/4 of the business depends on the embroidery machine and digitizer you choose for startup. Melco machines are really good, but I would say $12.000 is a little bit too much for a used one head machine despite all the advantages you've numbered. I would recommand a new Brother PR600. Though it's only 6-needle, it is extremely easy-to-operate and has cap equipment. Of course that is my personal opinion :)

Whatever you choose, I wish your uncle and you good luck and prosperity!

I think the price sounds reasonable given that software is included if the machine doesn't have too much usage and has been well maintained. Make sure you see it run, look closely at the stitch-outs and if possible show the examples to an experienced embroider. If possible have a Melco tech check the machine. Make sure you see a cap run. I don't have an Amaya but some of the early machines weren't real good with caps although they are especially fast with flats. There is an Amaya Yahoo User's group (AmayaEMB) that might be helpful to you:

http://dir.groups.yahoo.com/dir/Hobbies___Crafts/Crafts/Needlecrafts/Embroidery?st=892

Chiming in late here, but I'd check out SWF's E 1501-C machine. It's a 15 needle, single head compact machine. It comes with a cap system, too. If you buy it at a tradeshow, you may be able to get them to throw in the Fast Frames system as well. It comes with their digitizing software and 3 days of training. For $11K-$13K, depending on when/where you purchase.