The 4gb 360 version is a ok starter system, however you will need/want to buy a few accessories. Namely, the charge kit (~$20) and a headset (~$20). Let's not forget the 12 month Gold Live subscription ($60) since a Gold account is required to play online on xbox360. So you are already talking $100 on top of the $199 system for total of $299 without tax and you haven't even bought the game yet.
Of course, there are deals where you can offset the cost. Just depends how much your willing to spend and if the deals are available to you.
Here's one for 250gb console with two games, one controller, three month gold subscription, a headset and includes a $60 gift card for $299.