Have you played guitar before? Are you planning to take lessons? What is your honest prediction about whether you'll actually stick with it?
The reason I ask these questions is because if you really think you're going to stick with it, I'd start with better gear. The guitar in this starter package is pretty crappy and you'll be looking to replace it already after six months with the guitar you could have bought out of the gate. Cheap guitars generally don't stay in tune, sound sorta crappy, and are more difficult to play. The amp in this kit is crappy too, though I would stick with a cheap amp (or even no amp at all) until you've confirmed that you'll stick with it.
If this is an impulse buy, however, and it's something that you think you'll mess around with for a bit and then move on to something else, then I'd spend as little as possible and the starter kit really fits the bill.
Just my two cents. You'd need to check it out in person, but something like this guitar might fit the bill for a Fender Strat:
http://newjersey.craigslist.org/msg/3068898214.html