Its not a bad lens. For its price, its pretty good, considering the AF-S motor and VR.
Here is a review on the lens:
If it were me, I would not make this my primary lens. Its just not wide enough for everyday shooting. The 18-55 kit lens inst too bad, and its relatively inexpensive as well. I think used copies can be had for $125 or something like that.
If you want a lot of range and still need to meet your budget, you could look at either the Nikkor 18-135 AFS, the Sigma/Tamron 18-200. Of the three, I would take the 18-135 Nikkor, because 1) its a Nikkor and will retain a greater value, 2) it will focus faster due to its AFS motor, 3) optically it is superior, and 4) quality control of the lens optics are generally greater with first party than third party lenses, leading to a greater quality product.
You wont have image stability on either of the lenses above, but the wide angle is covered, and a moderate telephoto is there as well. While the build quality of the Nikkor 18-135 can not be compared to the professional lenses, it is probably on par with the 55-200 VR you were looking at, which isn't that bad.