Hmmm, another good guess, but not correct. I hadn't thought of the visual similarity to eels either. I expected people to guess legless lizard, but not the others.
Ok, I'll throw a few more hints, and then give the answer before I have to leave for the day.
Not a fish, not a reptile. (what's in between?)
Lives on land, has a backbone, is legless.
They're rare, most people have never seen one.