I don't see why low serial systems should be more valuable, aside from collecting issues. Technically what matters is the board revision your console is sporting, which determines the video and audio quality to some extend, but all consoles can be modded to have the same quality. You should also note that the low serial numbers have thinner plastic on the casing, meaning they crack easier. $200 with controller/hook-ups sounds fair...
//EDIT: To check what board revision you have you can look through the cart flaps.
Find a tutorial here. (should be 3-1 with such a low serial number. Needs 100uf caps replaced with 470uf value for best RGB output)
Sounds like a vertical sync issue to me (vhold), so there might be something wrong with your display or the cable.