This guy "Tony" is legit. Just look at all the threads on CAG about his new business. Each is filled with person after person coming in asking if it's a scam but then being convinced to give a go, which then turns into a positive review a few days later. Supposedly, to offer low prices he doesn't advertise anywhere but just relies on word of mouth. Also, I think in one post he mentioned he's taking a loss on some of these pre-order deals in order to get the store name out.
I ordered Crackdown from him 2 months ago and there was a slight miscommunication, which he cleared up quickly and gave free overnight service. In my opinion, every online retailer makes mistakes occasionally, but it's how they fix them that makes or breaks them.
Now I have GTA 4 and Halo 3 pre-ordered.