I bought the 17-85 EF-S as my first lens along with the 20D body. It's an excellent lens with a really handy useable range. As Steve says you can get a duff one, but that can happen with any lens. The thing to be aware of with the EF-S series lenses is that they don't fit all Canon cameras, for example the flagship models IDS etc, and it's slightly worrying that we don't really know how long Canon intend to support this lens mount in future cameras. Given that they've brought out a few of these lenses in rapid succession, it will probably be supported in the future, but most users are wary of committing to too many of these lenses, although I'd imagine they're always going to very saleable to the hordes of 300D, 350D and 20D users who will be around. I have to say the IS is a huge asset for low light photography.
The other thing is the 17-85 EF-S isn't cheap, in fact it's pretty much the same price as the 17-40L which is a known superlative lens. It doesn't have the zoom range of the 17-85 EF-S, but you might well learn more about framing in the early stages with the discipline of using that lens.
This is an expensive game, particularly when you're just starting to invest, and I'd guard against going for too much sheer convenience, as you will undoubtedly add other lenses over time, and you need to be thinking long term about what your lens requirements are likely to be from the outset.
