Just thought I'd throw in my two cents. I'm a total Newb as well. AFter a few weeks of reserach I decided on the Walkera 4#3.
1. Something small enough to fly indoors (very important)
2. Something I can grow with and won't get bored with (I was concerned that a coaxial might get a little ho-hum after awhile, and I don't have endless bags of cash to upgrade through multiple helis)
4. Something I can upgrade and tinker with
5. Something relatively inexpensive to repair.
The 4#3 was hands down the winner. Plus, the support and information on the forums here is incredible. There are some incredibly talented guys giving out advice, sharing thier experiences, and even milling parts for people (e.g. Tbitz and his heatsink and small.planes and his aluminum rotor head)
However, the catch to all this is that I have never flown a heli before. Against most people's advice I went with this small fixed pitch heli as my first heli. In preperation for this though I also bought the RealFlight G4 flight sim. Since I have another couple of weeks before I actually get the 4#3 (it's a birthday present for me at the end of the month) I have been spending at least an hour a day in the heli orientation (direction) training and free flight with the smallest electric FP heli I could find in the sim. So far I'm up to 10+ hours of just training on the sim, and although nothing replaces real world experience, I'm a heck'uva lot better than I was. I can even do some nose-in hovering which apparently is like the holy-grail of learning to fly.
Additionally, I have also been reading Radd's heli training page. It's not a direct one-to-one correlation to the 4#3, but the principles are more or less the same. (the page can be found here: http://www.dream-models.com/eco/flying-index.html
Again, take this from someone who has never flown a heli. I don't think the 4#3 is a bad choice for a newb IF you take the appropriate steps to prepare yourself to fly the thing.