Greg - the item you were bidding on had a reserve of $340. The bidding process worked exactly as it would have on eBay - you won it for the reserve price, even though your ceiling bid was higher.
For a reserved item is live, the status of the reserve is displayed next to the "Current Bid" line in the listing. It is red until the reserve is met and then changes to green once the reserve is met.
http://www.grandslambids.com/auction...tion_id=100514