The components are fine. They're not top of the line by any stretch of the imagination, but they will do their job. The only catch is that they will need adjustment more often than a more expensive groupset.

Check Craigslist for used bikes. The issues with Craigslist for beginners are that beginners often don't know how to size a bike properly (I *thought* the first bike I bought off Craigslist fit me well, but the more bikes I rode, the more I realized that it did not), making sure it's in good condition and there's nothing wrong with it, and making sure you're getting a good deal. If your friends are really into bikes, bring them along to help you.