Beware of the needles at Target....they are not useful for teaching someone to knit unless you do quite a bit of sanding of them first...even then, I am not sure they would be very good. I would go with some decent needles from the LYS instead.
The yarn, OTOH, while of poor quality, is fine for fun projects or for someone to practice with, IMO. I would not expect it to hold up over the long haul, tho.
I did get quite a bit of it to make little gifts for people.
Just my humble opinion.