Not to sound dense, but shouldn't there be two checks if this is how he hopes to prove he paid? One for the StreetFax and one for The Face Book project? Or does it say something about The Face Book in the memo (cannot read)?
It could turn out that he paid $1,000 for the StreetFax project but they both abandoned the original "The Face Book."
Yes, I'd agree there's a chance that this contract (if real) was canceled by mutual agreement (or de facto non-performance by both sides) before the real Facebook work began. That's why it'd be interesting if Zuckerberg's email archives of the era include any exchanges with Ceglia. Just a couple of words between them indicating any different understanding could make all the difference.
It could turn out that he paid $1,000 for the StreetFax project but they both abandoned the original "The Face Book."