Dave, as a rule we suggest that you look for a router in the 2+ HP range in a combo-kit that includes both a fixed and a plunge base. If money is an issue then at least a plunge router. The plunge router is capable of much more than a fixed base router, and I feel you are better off with a plunge than with a table. Sears offers an excellent value 2-1/4 HP combo kit for about $119. Besides more power to work with hardwoods these kits include an extra collet which allows you to use 1/2" shank router bits. As you might suspect, the 1/2" bits are much stronger than the 1/4" shank bits. This combo kit also uses Porter Cable style guide bushings which are far superior to the plastic Craftsman bushings. Rockler Woodworking has an economy table that sells for $49 and is a great value. With the information on the forums you can build yourself a nice table for very little money.
All that having been said it is hard to beat the value of the set you mentioned. It will get you started routing and enjoying woodworking. Getting started is the best thing you can do. You can always upgrade down the road as you learn more about how you will be using a router. Please spend a few minutes reading my blog which is called "Sawdust dreams" in our blog section. Scroll to the bottom and work your way back to the top. I tried to answer the most common questions we get from new members there. Welcome to the forums and enjoy!
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Mike
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