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Im thinking about starting warhammer (I play 40k) and Starting with High Elves from Island of Blood. Is this a good army to start out with?

I think so yeah. It's gonna be cheap enough, with the boxed set, it's got something to do in all phases of the game (Good at shooting, good at magic, good at combat, good manouverabilty) it's got all the different troop types (Infantry, Elite Infantry, Monsters, Cavalry (light and heavy) good mages, powerful lords, war machines) except for monstrous infantry.
It's also an elite army, so it's got a low model count. I'd recommend looking at the entire range before picking them up though, as not all the miniatures are as nice as the ones in the boxed set. But on the whole it's a cheap, elite, versitile army.