I would say that yes, that particular tablet will serve you just fine. In fact, I've been working with a slightly older version of that model (The only difference? Mine is a really ugly shade of grey-brown.) for years. It is easy to drool over the larger and and more advanced Wacom tablets, but I can't say that using the small one has ever really given me issues. It's definitely a good starting point that won't break the bank.
Thank you! Completely appreciate your time and thought.
KD
I have a graphire 3 4x5 that has been a really great beginner tablet for me. 
Even if I DID name the stupid thing "dammit"
Just bought that at Futureshop.ca, well the wife did, I gave her my six year old Graphire 2, which she is forcing herself to use. She does vector art, so the mouse is more of her thing. I love this new one though, it has a nice hard plexi glass or plastic glass cover over the tablet, which feels way smoother/better than the old G2.
While I would love one of those awesome Intuos or hey let's dream and get a Cintique... this Graphire 4 hits the spot, all the work in my current gallery was done with it.
LJ
I personally haven't found a tablet that doesn't want to work well with PhotoShop, but that's just me ^^""
Brutes are built to kick @$�, not to save that of yours - Double Electro
My DeviantArt | RobotSouls.com
I have an Intuos3 6x8 that I just got recently and I really like it. It has been a lot of fun to use. You can see multiple pieces that I have created using it on my DA page.
I really like the tablet when working in PhotoShop, but I have not been able to use it very well in Illustrator (I use a mouse for all my vector art because I can get much finer control that way).
Anyway, I started out using a friends Graphire and they work very good and should meet all your needs.
50 Fire/Kin Cont
50 Fire/Axe Tank
50 Spine/Inv Scrap
50 Eng/Dev Blast
50 Claw/SR Scrap
50 Emp/Dark Def
50 Eng/Elec Brute
50 Fire/MM Blast
My DeviantArt Page
Graphires are great. I use an Intuos3 but that's my personal preference because I like a lot of room to swing my arm around (mine's a 9x12).
All your Intuoses are belong to me!
Is this a good pen and board for working with Photoshop?
http://www.wacom.com/graphire/4x5.cfm
Wasn't sure where else to post this. I have been drawing quite a bit more however I am finding myself looking in ernest to have these colored and feel this would be the best way to move forward.
Thoughts?