I do not own that particular gun but every 1911 I own breaks down the same way. Here is a video that might help
http://www.youtube.com/watch?v=-GLeP28IdPA&html5=1
I don't feel like your off too far on your price. I paid $700 for my '58 Belgium .22 but it didn't have the original box. If the box was in mint condition I would pay what you are asking for it.