UPDATE: This appears to be dead as of 11PM est.
Target GiftCards and Target Mobile Gift Cards can be redeemed for merchandise or services (excluding American Express® and Visa® gift cards and prepaid cards) at Target stores in the U.S. or Target.com. Target eGiftCards can be redeemed for merchandise at Target.com only.
This deal cannot be combined with the 5% Red Card discount or Ebates. Apparently you can use a gift card to buy another gift card.