Kafie1980,
Thank you very much for posting this information. As you suspected from the beginning, there is no way there were German bearings in that spindle based on the selling price - "If it sounds too good to be true, then it must be too good to be true".....
Aside from that, I am surprised that the spindle looked that bad, I mean really? I know the price we pay for Chinese made products dictates what we get, but that is some serious rust on that! At that point, it barely fits into the category of typical Chinese made products of "Well, at least is looks like (insert product name here)!"
I have the 2.2kw air cooled version of this spindle - probably from a different ebay seller, I'm hoping it will last a little while at least.
Chris D