Thanks for the tip Brian! I already had it looked over before I bought it. The guy I bought it from is a 5th Dan in Japanese sword. I believe his organization is Taikai, but I'm not sure. He showed me how the basics of taking it apart, re-wrapped the handle, etc. It is full tang and I've seen it cut. His studio uses identical swords for cutting practice as well and haven't had any problems. I talked to a bunch of his students to confirm also. I wasnt about to buy a sword that I intend to cut things with without a pretty thorough inspection. Especailly after all the stories of pegs breaking, blades falling out and flying across rooms, etc....
For the low price, I was very impressed with how thorough and caring the guy I bought it from is. He owns a dojo and a martial arts supply store, which specializes in swords. So the dude isn't off the back of a truck and he isn't a joke. Although I still do have to find out the name of the forge...