Hey, I am new to this site and I was wondering if anyone can explain the how the max bid works. Does it automatically place the max bid when you're sniping? For instance, I am bidding on an item that is currently at $1.04 and the min increase is only 4 cents. I am willing to pay up to $8.00, but if it never increases from $1.04, will it bet $1.08 or jump straight to $8.00? Thanks for the help.

It will bid the amount you set. If nobody bid higher, you will win at the lowest possible price just enough to outbid the previous bidder by one increment only.
That winning price will be $1.08 in your example.

Great, that's exactly what I was looking for. Thanks for the help.