That's a competition kit, dude. They can get a decent RTR for that price. I also recommend the RTRs as a place to start. My personal recommendation would be a couple of these.
http://www2.towerhobbies.com/cgi-bin...?&I=LXFSK5&P=0
http://www.hpieurope.com/kit-info.ph...=10402&lang=en
They're good quality, cheap, everything included, and the kids'll still learn the really important thing of engine management and tuning. This car can be run on or off road, has a bunch of hop ups available, reliable mid range engine (no crashes at 50mph, these things do about 40 tops), faster engines can be bought as their skill improves, basically what I'm trying to say is you don;t lose anything at this stage buy going for RTRs, you can get 2 good ones cheap and only have to worry about ancillaries. I had one of these MTs (the previous model, not the MT2, the MT2 is an updated version) for ages and beat the hell out of it, before going eventually for a competition 1/8th buggy (the XB8).
Lastly, I have to ask if you've considered one of these...they are normally a bit on the steep side, at nearly $500 a pop, but this place is running a crazy discount, (I just spotted it while hunting for an example to show you), these little nitro cars are amazing, the kids will go nuts...
http://www.amainhobbies.com/product_...ducts_id/10894
Xray cars are known for their high quality, $239 is an absolute steal, I don't understand how they can be offering them at that price [&:]