That’s a ton of stuff for not a lot of money. Good deal if it’s not all garbage. Heck, good deal if it is garbage. Just a D40 with the lens on Amazon is $480.
I opted for the Nikon over Canon for an SLR too. My wife just picked up the D40X, which has a few changes including moar megapixels. We like it a lot, but just the camera body with the same lens as your link was (I think) $650. Then I got her the 55-200mm Vibration Reduction lens, which was like another $200.
So yeah, that looks like a screaming deal.