No it doesn't work on best offers. What you need to do is negotiate the price in email and then have him take down the buy it now price to agreed upon price. Then apply MS Live discount to that. You can get some screaming deals with this approach. I've found a few great cards this way.
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<< <i>Does the MSLive cashback offer work on best offers? >>
thats what I was wondering. If it does then I've been doing it wrong.