Have anyone here ever bought from Craigslist before
and is the process smooth?

Some1 posted up an ad about a 2 years old yamaha fg 700s for
125$, stating 1 ding next to 18th fret, also, being a beginner,
what's the best way to test it out?
Call the guy up, if he lives near by drive to his house(or get a drive) and test it, tap each pick-up with your pick to make sure it works, and assess the damage that has been done and what the guitar is worth in your mind.
My Gear
Yamaha Pacifica (D'addario Flatwound)
Roland Cube 60 watt
Dunlop Crybaby Wah
Electro-Harmonix Big Muff Pi
Boss RC-2
Montana Acoustic Guitar(Martin Regular)
A pickup? This is an all acoustic guitar.

Anyway 'ding next to the 18th fret' isn't very helpful, you should pay the guitar and the owner a visit. Would "next" mean on the 18th fret or to the side of it? And assess how big it is and yadda yadda. Craigslist is great if you can find an ethical seller and a great deal.
I actually just bought a Vox AD50VT amp from a guy on craigslist for $275. Just e-mail the guy and ask to check it out. But make sure you get to plug it into an amp before you buy it. If it's just the guitar, ask and see if he has an amp you can try it on.
Same, I just bought an SR800 Soundgear Bass from some guy on craigslist. In my case he was really cool, but don't buy anything if they don't agree to let you try it out. Thats the purpose of craigslist, its all local.
Ibanez RG2EX1
Line 6 Spider III 75
Old SG Mock
dude talk them down. its so easy. i got a lp standard for 250, and im getting a SG tomorrow for 225. oh and i bought a micro cube for 70 . but just check the neck out make sure its nice and straight. ask for pics before you go.

I went to see a takamine last week and there was holes from the guy missing the strings.
I was so pissed i wasted gas and time to see a POS guitar.

But good luck.
oh and its best to meet in a parking lot ( dont have to worry about an address)
Yeah you can always call them up and arrange a meeting so you can try the instrument out. Personally though I prefer buying pieces of crap on there that Gothkid X didn't take care of and fixing them back up, but that's just me. There are some great deals to be had as long as make sure to test whatever you're buying first. Most transactions will go something like this.

1. Call Person Up
2. Arrange meeting
3. Try equipment
4. Give them cash for it and go home with your new toy


4. Piece of equipment sucks/doesn't work and go home without wasting your money.