I bought this kit 2 weeks ago.. and have been pretty happy. it IS a cheap kit.. But if you need to do some light portrait or product work.. It should work very well for you. If you think you need a bit more.. look at the 4-500$ kits. But if you are starting out you get a good bang for the buck.
This is exactly what I wanted to hear (see) from someone who has the kit. I don't know much about this kind of thing yet - actually, I don't know a damned thing about it yet. But, I'm looking to start taking Santa pictures and maybe portraits at the Halloween party. Something small with little or no pressure. I'm thinking I start with a kit like this and figure out what I really need/want and then buy a "professional" version.