Not bad, but you are going to need a better memory card than that, 7mb isn't going to give you much room to work with unless you are close to your PC alot when you take photos...so add in the cost of an SD card.
I'm looking at the Kyocera Finecame L3V myself....the colors are really good, the movie mode has sound and is crisp, has expandable memory and it has a cool light strip in the front of the camera that flashes on to let people know when the camera is going to take the picture.
I could get an Argus 5mp camera from Micro Center for 159 after rebate, but it's horribly slow ( 7sec start up ), the picture quality has a little noise, the movie mode is horrible and I don't need to take pictures at 2000 x 2000 resolution ( approx. )
If this is going to be your first camera, then I think it would be a good buy for the price...you probably don't need a bunch of extra features like adjustable shutter speeds, etc. If you find that you like using digital and want to upgrade, then you've got a nice cheapy camera sitting around to use whenever, and then can buy a better one for more important picture taking occasions