That is a very good choice for your budget. I recommended it to a friend's teens who were wanting to play but couldn't budget an acoustic. It has good sound and action and offers other sounds which add interest. Also it has a USB port to connect to a computer for MIDI purposes. You can buy computer programs such as Sonar for PC or use Apple's Garage Band to record and make CDs or MP3 s for friends as you advance.
For comparison, I have a Yamaha ES-8 (the latest is an FX-8) that is an 88 weighted key workstation---that has 1500 to 2000 sounds that cost $3,400 a few years ago, and I use an iMac (pcs crash when running audio/ music programs) with digital interface to write and record; i also have a 6 foot Steinway " L " I bought new around 5 yrs ago... So I'm pretty picky---and I've thought about adding one of those Casios to my toolbox because it is good and lightweight and I can take to gigs. The Yamaha weighs 70 lbs or so without a case. Another plus for the Casio is you don't have to buy an amp, but can use one if desired. Guitar Centers usually have them in stock if you want a test drive. Yes, this a good place to start---I've seen friends buy $5k grands for a "starter" piano for their kids who give it up in a year and a half. If you enjoy, then upgrade! As I've advanced in this hobby, I've moved up the instrument ladder. I hope you enjoy---the great thing about music is there is always more to learn!
Topic: What keyboard/digital piano should I purchase?