I found a used copy of this in a local book reseller store for $5.00USD. Decided to buy it. 

Is this a good book to start out with? Basically.. I know how the pieces move, but.. I don't know much about strategy and tactics.

One thing I noticed is that he used a different type of notation than the Algebraic notation I just learned (A-H, 1-8). Instead, he names each square based on King or Queen's side, what piece started at the bottom of the column, and then count up to 8. For instance.. QB1 for White (Queen's Bishop = C1) is QB8 for Black. And.. KKt6 for Black is KKt3 for white, and is G3 is Algebraic notation. It seems to throw me off for a bit, but I think I am getting the hang of it. 

Anyhow, is this a decent book to start with? 

Also.. should I be following along the examples with my own chess set, just to help illustrate what he is trying to point out?

I think it's smart to follow the excamples with your own chess set, at least if there's more than just two or three moves between each diagram.

For a start its quite okay i also have a copy of that book. it deals with the basic approach to the game. im just not sure if it came out first before nimzovichs' My system but for a start it can help. When Im studying a chessbook i always have a notebook at hand to write down my analysis when I find that the authors choice is different from my preferred move so that i could understand why.Since youre starting, follow the examples with your own set then jott down your observations, comments and analysis and dont forget to include the page.You will notice that after weeks of studying the book your analysis will be a bit deeper than the previous weeks.

NO please do not buy that book!I have also bought it about 1month ago

and it's just a waste of money!!!

the examples are too dull and there are much better books than it.

seriously, take my advice. (the description sucks)

The updated version with algebraic notation is very useful for first learning chess, and it's quite a bit older than My System.

It teaches excellent endgame play, and the middlegame tactics are still very useful instruments for recognizing what mating possibilities occur often in novice play.

The biggest beef I could point out with the book is that the opening strategies are a bit dated, and he's very inflexibile on some strategic goals that aren't as important anymore.

Basically follow through on all his combinations to win pawns or pieces, but the way he treats pawn structures, especially isolated and doubled pawns is archaic at best compared to the modern style.

Tarrasch AND Nimzowitsch was very dogmatic.

What means Tarrasch: In the past he was the "German chess teacher", his book was very, very succesfull, its easy to understand and really to read with pleasure. For a beginner its not wrong to get dogmatics order (until 1600).

At the end of his life he was not able to update his knowledge and he didn't accept the new hypermodern theorie of Nimzowitsch, Reti etc. 

This is a great book to start off with. You should skip the section about specific openings (it's outdated) and just read the part about opening principles.

But yes, this is a great book to get you started in chess. Good luck!