Scam or no scam ?

As Fchat has a history of scam stomping, I'd like to ask what you think of some replies my brother received on Craigslist regarding a PSP he has for sale. I can understand if this is an obvious fraud to some of you, but I myself am new to craigslist and am not sure. I appreciate any viewpoints you have on this.

Here's the Original Ad:
http://victoria.craigslist.org/ele/277336101.html

And here're the emails that have been comunicated:

Aggressor:> You still have this for sale?

Brother:> yes, i still have it.

Aggressor:>Thanks for your reply concerning my enquiry,am base in 300 Mansell Rd., Alpharetta,North of Georgia United State(NG/US).Am quite comfortable with the condition of the item since i won't be making any repairs on it,i will like to offer you $500 including packing materials without you paying for any shipping charges b'cos i already have an account with FedEx,i would have loved to make the payment in cash and carry but we are not in the same state so i will like to go ahead with the payment by sending you a Money Order which will be sent to you directly from usps office here in Alpharetta . I wanna buy this PSP, 2gb memory stick, 3 games, case my step son to fulfill the promise his dad made before he died,i lost my lovely husband to an auto accident on 29th of January 2007 and since then i and his step son tobi have been living seperately and i want to buy the item for him because his dad promised him before death took him away from us and i think with this i and his son can live as a family .Kindly get back to me immediately you receive my E-mail with your full name and mailling address in which the money order will be sent to and get back to me with the exact type of money order you prefered to be paid for this item ok.
Regards.

Brother:> Hi there, i'd be more than happy to send this away in the mail via FedEx, but before i did that, i hope you understand that because of scams and what not, i'd have to physically have the cash in my hand before being able to post it. If you're ok with doing this then please let me know.

Aggressor:> i understand but, i will have the money deposited with usps ok, which i will also contact them to let you know your money is been deposited with them ok, all i need from you is your full mailing address for the payment arrangement today ok
thx

Brother:>Since this is Victoria craigslist, i was expecting someone local and I dont understand how usps delivers the money. Could you give me an overview of how it works? Thanks



He has also mailed Craigslist abuse.

Any thoughts on the matter would be very helpful!