Pumkin:
I know you may be upset but please listen to what people are saying. And understand that while this website IS here to talk and share about cavaliers, the single most IMPORTANT thing this website and community is here for is to cherish and protect a breed that is under serious health threats due to unscrupulous breeding practices of backyard breeders -- and puppy mills -- one is as bad as the other. And often the people who say they are small breeders are simply fronts for puppy mills. Puppy millers typically set up lots of small websites saying they breed one or maybe two breeds. You google around and find the same PO Box is selling 17 different breeds.
Many people here have been down the route you are going and know what prices a breeder should be charging and what the breeder should be saying. They are telling you things now to prevent what could be real unhappiness further down the line as well as the acquisition of a puppy that will have very expensive health problems (in this breed you tend to get what you pay for as healthy breeding *costs more*). There are many unscrupulous breeders out there and the site you have posted raises some of the more typical red flags about a backyard breeder who is NOT breeding for health or conformation.
One of the red flags would be the price of these puppies -- this is simply too low for a breeder who is doing any proper health testing of her breeding animals (this is LESS than what many breed rescues often charge for dogs they take from puppy mills for example -- it is just way too low and I'd really be suspicious that they may not be breeding at all, but brokering puppy mill dogs instead). Also: the fact that they register with other registries than the AKC indicates they are trying to dupe buyers into thinking the dogs are more valuable than they are. The other registries are known as trash/bogus registries -- anyone can register a dog there. Sure they give you 'papers' but they are worthless. Typically what this type of breeder does is say they ALSO register SOME dogs with the AKC but actually don't register any of them there -- they add it in to their website to make themselves look more legitimate. Or, they have one or two dogs that could produce litters they CULD register with the AKC but suddenly you will be told the AKC ones cost more. As Bruce -- a very reputable, health focused, experienced breeder says -- you need to ask if YOUR puppy has AKC registry. I am willing to bet it probably does not.
Some of the other things you have said this breeder told you are all the red flags that indicate a backyard (unscrupulous) breeder at best, I'm afraid -- that's why Bruce rightly suggests people take their time and investigate a potential breeder carefully.
Whether they are verified on PayPal means nothing -- I mean, I am verified on PayPal and that wouldn't mean I am a reputable breeder! Whether they have their dogs cardiac tested, test for eyes, hips, knees, potentially also screen for syringomyelia, and follow the well-established cardiac breeding protocol for the breed is what really matters.
Have they discussed with you the fact that, because of breeders who do not tecardiac test their breeding animals and follow the heart protocols, statistically, half of all cavaliers will go into heart problems by age five? That if they are not cardiac testing and following the heart protocol, your puppy will have a much higher chance of acquiring a heart murmur by age five and dying before age 10 from congestive heart failure? Have they mentioned that the neurological condition syringomyelia seems to affect at least half of all cavaliers, and told you how they are addressing this in their breeding programme? Have they discussed any health issues pertaining to the breed at all with you? A reputable breeder would have done all these things.
Did they tell you that thumbprint on your ruby's head is actually a white cosmetic mismarking on a ruby which ideally should be completely red, not the thumbprint that IS considered desireable, on a blenheim (red and white) cavalier?
Here's a good link for learning about what to look for in a breeder and what to ask:
http://board.cavaliertalk.com/showthread.php?t=11335
People here know this breed and (often through sad and costly personal experience) know what to look out for from puppy mill and backyard breeder vendors. They are trying to give you support and advice now that you may later regret not having listened to. At least have a read through the link I offer above and think through this carefully before making a commitment to these puppy vendors. Consider too the overall costs to you of caring for a breed that MAY have expensive health issues and is more likely to have them sooner if purchased from a breeder who isn't health testing and breeding carefully for health. A single visit and testing at a cardiologist for a dog with a heart murmur could run you the cost of the puppy you are talking about -- and that will only be the start of things. Buying a puppy at higher cost from a reputable breeder vastly increases the chances that you won;t be paying out those costs within the next couple of years -- and maybe never. You never save money by 'buying cheap' with dogs.