That's not a bad kit, but you can save cash on something more basic. This is all you really need to get started.
http://www.annapolishomebrew.com/shopstartkitbeer.asp
Go to any good store and you can pick up a good stockpot for about $25. And if you go with making your own chiller, that runs about the same. For a standard 5 gallon batch, as long as you can boil 2 gallons, you are okay. That's about the limit I recommend. More is better, but not really required.

I started with something similar and it did just fine for about 10 years, then I got into corny kegs and lots of other gadgets, just for fun. I like saving a buck whenever I can.

You'll enjoy it;)