There's a nice looking Takamine Santa Fe electric-acoustic guitar in the window of a pawn shop that I've been lusting after. The guy in the shop claims it's worth $1000, but there are at least two major dents in the top part of the body. Can anyone help me out? Is it a scam? Will the dents have an affect of anything other than cosmetics? I'm thinking of trading my Godin Acousticaster, plus a condenser mic for it, both of which are in near perfect condition.

http://www.worldmusicsupply.com/Takamine/Santa-Fe.asp

As you can see, the price on the Santa Fe series varies dramatically., from $1000 all the way to $2000.
Dents definitely decrease the actual sale value of the guitar a lot. If it's one of those that was worth $1000 new, I would not recommend playing $1000 for it now.
If it is from the more expensive end of the spectrum, it is likely that $1000 is a pretty good deal.

However, to determine if and to what extent the dents actually affect the sound and feel of the guitar, you really have to play it. Don't buy it without playing it, and don't buy it if it doesn't feel right.

http://www.musiciansfriend.com/product/Takamine-Sante-Fe-NEX-Flame-Maple-AcousticElectric-Guitar?sku=511972

It's a tough call.  I don't care about dents too much, as long as they don't affect the guitar.  Make sure the inner bracing is unaffected: press down around the dents gently and make sure there is no give.  Play a chord to make sure there is no buzzing or anything and just make sure it feels good.  That's a used guitar, so it's broken in.  You'll  know if you like the guitar when you play for 10 seconds.

I'd check the saddle, bridge, binding, neck joint and tuners to make sure they are OK.  Have you thought about eBay? Or...another guitar?

hmm  i have purchased music gear before at a pawn shop ..but usually if i had looked i could have found a better deal.. these guys are in the business to make money ..they rarely screw up and usually sell on the high side..
look around get the numbers off of the guitar and check with another pawn shop or guitar buyer/seller that could look it up for you.  This should give you an idea if it is a high end or on the low end..  be careful because some of the stuff in a pawn shop is stolen... they have to run the numbers but sometimes they don't catch it  then later on some one could see you playing it ..say hey that is mine and i have the proof and then your in a court battle over your guitar.   I have first hand knowledge of this ,  I did have to go to talk to a detective in Raytown Mo., over a  crest pa amp that I had purchased at a pawn shop,  come to find out, it was an identical amp, but not his amp..lucky me.

Thanks for the great advice guys. I've decided to pass on that guitar; too risky buying from a pawn shop. Thanks again.

Don't know whether you have them in canada but here weekly there are pawn broker auctions .
Suggest check the auction page in local news paper.
A lot of gear flies through.... amps, shit guitars , great guitars, fx , cameras and mountain bikes etc.
I bought my japanese strat through one ,normally $ 750 at the 2nd hand shop but at auction $350.
You should be able to check out the instrument prior to auction but in the end it's buyer take ure chances.
But if the instrument looks ok straight and brand is legit then go for it.
There are guys make a business out of buying them up and then selling on ebay with markup.
good luck  

If you look around and talk to some other musicians and shops they can usually come up with the same thing or something just as good or better,  I know a lot of people can't stand guitar center but I purchased 2 Ibanez guitars for the price of one , just cause one of em was used , the other new  both in mint condition , I was researching these guitars already and new what they were going for. I talked em down some and the manager agreed to let em go for that price. much better deal than buying two used ones on ebay . or other places.

What's the update on the purchase of your guitar?