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Looking to out Warmachine with a few buddies, and I don't mind making a few mistakes with what I pick up to start though I would at least like to be in the right direction. The Khador part of the two player set a good place to start?

Its not a bad place to start, you get the battle box plus a unit of Man O War Shocktroopers. It lets you get a feel for caster, jacks, & infantry unit. And if you split the box with someone you get it for roughly the cost of the battle box.
(you might want to magnetize the jack arms to give you some versatility later)

It's a great deal, and will give you a good sense of the game, but none of those pieces are staples, and may end up collecting dust. None are expressly bad, but none are what I'd call great.

So, yes or no, depending on what you want out of it.

Thanks for the advice. I went ahead and grabbed it, I don't really need the Menoth stuff, but I'm hoping I can get my kid interested. If not, eBay away!