We have here the Nikon 18-55mm kit lens that is seemingly designed to do one thing: make you want more. I received mine as part of my kit package with my Nikon D40. It is a decent lens that cuts corners all over to keep price down, and doesn't really do anything great. However, for those first starting out, it's light as a feather, simple to use, and at least for the initial month or so, all you need to get out and start capturing memories.
As expected for the price, it is of relatively low-grade plastic construction, to include the mount (the part at the rear that connects to the camera), however the optics are uncharacteristically sharp. While it is an AF-S lens (focusing element in the lens and not the camera), it doesn't benefit from full-time manual override found on other AF-S lenses (that is, you're able to make manual adjustments after the lens has focused). I'm sure that Nikon did this as a cost-cutting measure. For users of this lens, this shouldn't be an issue as you can always switch over to manual focus anyway via a switch on the lens or camera (save the D40/X which doesn't have an internal focus motor and as such no switch on the camera). However, more experienced users will find the manual focus ring quite distasteful. Also, since the front element rotates, use with a polarizer will be annoying.
With a variable aperture of 3.5-5.6 you can easily get available-light shots for outdoor daylight photos, and well-lit indoor photos without jacking up the iso too high at the wide end, but near the long end, you're going to need to use a flash unless you use a relatively slow shutter speed or high iso setting. You're going to get some vignetting (darkening of the corners) on the wide end, as with any wide-angle lens, but this can be corrected with most post-processing software, like Photoshop. Also, there will be CAs or purple fringing with high contrast images.
The range is quite short, though not as bad as say the 17-35 or the 35-70 (which outclass this lens in every way, shape and form), and will definitely have you wanting for just a little more reach at the long end. The
Nikon 55-200mm f/4-5.6G ($199.95 Amazon) is an excellent compliment to this lens, or if you can afford it, the
Nikon 70-300mm f/4.5-5.6G AF-S VR ($473.32 Amazon). The difference between 55 and 70 is fairly small and won't be missed (but the difference in price will hurt a little more). 18mm will most likely be plenty wide allowing you take large group, landscape shots, and even some fun distorted portrait shots due to the barrel roll at the wide end.
All in all, this is a lens to get you started, but leaving you wanting for more. More range, faster light gathering, better construction, etc. Its cheap construction is enough to keep price down, but won't take very much abuse. Also, being a kit lens, you'll be hard pressed to sell it unless packaged with the camera if you ever upgrade lenses in the future. It is what it is, with the only alternative at this price being the
Nikon 50mm f/1.8D ($109 Amazon) aka, the nifty fifty.