todd shill bidding is like what you described but a little different too.
person a lists an item
person b is his 2ndpc/friend
the point of shill bidding is to raise the price being paid WITH OUT winning the auction.
you said that guy out bid you for $105 did the seller relist it cause person b(himself) won it or did someone actually out bid you in the last second?

as i told you in a pm i got busted for it so i know a little about it
shill bidding was done in first month cause i didnt think there was anything wrong with it until i got suspended and they told me what it was.
except i was dumb and would bid to my high bidders price and then cancel my own bids and then rebid them up to $.50 less than his......he put a proxy bid of $50 i would bid my own auction up to $49

never use proxy bid unless your willing to pay exactly what your maximum bid is.
if you will pay $10 for somethign put $10 but dont complain when you do pay $10.
i say if its such a good auction and its such a must have item, be around for the auctions end. most GOOD items get bids on them and the starting price means nothing.
a low $.99 price gets more people involved in the auction.
ive used ebay for 2+ years and you all must realize its no longer the secret to low prices it once was. everyone and their grandma are selling and buying.
hell there aint no better price guide to any item in the world than ebay. you name it its on there.
but its become so much of a wholesale/retail type thing the good "on-line yardsale" days are over.

ebay is great for price checking, selling, and browsing, but i think the good ole days are gone.