Those pedals are fine. Did your friend give you the cleats that go along with the pedals? If not, be sure you get compatible ones, like this:



They're two-hole, mtb cleats. Most road bike (three-hole) cleats won't work. Not sure about the adaptors roadiejorge mentioned.

I've got similar pedals on my road bike and they're fine. You don't need to worry about upgrading unless you want to race or road shoes have a huge appeal for you. The mtb shoes are much easier to walk around in. Shimano and Pearl Izumi have some cheap but decent mtb shoes, possibly on sale this time of year, too. Shoe sizes vary by company, so I'd suggest going to an LBs and trying some on.