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The Horsehead is a dark nebula, to see it against the surrounding very faint nebulosity you need a large scope (generally at least 250mm) with excellent optics and baffling, the right filter, an excellent eyepiece and a night of very good transparency at a dark site. I've detected it with my 250mm but only seen it clearly in a friend's larger dob.
Back on topic, if your friend paid US$800 for this then either he was well and truly ripped off or he is not as good a friend as you think!
If it were the case that you only had US$129 to spend with no prospect of ever saving more and so that it was either this telescope or nothing then go for it, the scope has very serious limitations but its better than nothing. But a much better option would be to save a little more as a few people have suggested and get a 6 or 8" dob.
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