Lute Cost 100gp
Competence Bonus +5 = (5^2)*100= 2500gp
Command word lvl 0 (therefore 1/2)x caster level 1 x 1,800 gp = 900gp * 1.5 = 1350 gp
Total Price 3,950gp 158xp to create. So 3,950+(158x5)=4740gp to buy.
I know the rule Srri is talking about when you have multiple effects on an item. (I believe you multiply the lower ability prices by 1.5 each though, at least acording to the srd. I will have to go home and check though because the *2 sounds more like what I remember but right now all I have to go by is the srd) And technicaly speaking he is correct. The item is doing 2 things.
1) Its playing itself
2) Its giving you a +5 bonus
Though it is over 4000gp to buy I was ambiguous on whether the 4000gp limit was to create or to buy and it was a useful item regardless, so I still award the prize to construct.
BTW this kind of discussion is exactly what these contests are suposed to nurture. Now we all learn something, even the people just reading

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