D3100 for first DSLR?

What do you think about me getting a Nikon D3100 for my first DSLR? I am looking at a factory refurbished model with a 18-55mm VR lens included for $420. I like the HD video ability of the D3100, and the still quality should be great. I potentially have access to older Nikon film SLR lenses, but I hear that AF will not function.

Alternatives? Pros/Cons?

Thanks,
jptech