Factory refurbished means that the unit had gone bad and had been sent back to the factory to be fixed. You should be alright purchasing refurbished itmes. Plus, the price will be marked down a bit, but it should be good as new.
Be careful and do your research. Alot of times refurbs are only slightly cheaper than brand new models. If that's the case, there's no reason to buy the refurb.
I've seen some refurbs go for $330 when you can get a new model for $360. That makes no sense.