Looks like I'm a little late to the party, but I thought I'd share.
I've had pretty good luck with this setup. Still working on technique here and there, but I've had almost zero problems. The limitations I've had to date:
1.) Like Sea Yoda said, the continuously variable power adjuster can be a little difficult to use. Generally, I only mess with it if something looks massively overlighted. Of course, sometimes, it's not worth the effort.
2.) Recycle time is not great. Since I'm rarely shooting at full power, this isn't a huge problem, but when it is a problem, it can be annoying.
3.) The arm that comes with it isn't that swift. I replaced mine with all the ULCS gear (the Sunpak is compatible with the S&S mount). I love the ULCS stuff - it is really well designed.
Also, FYI, someone was asking about why the diffuser works in an earlier post. A diffuser makes the light source appear larger, which in turn creates less "point" light and more "ambient" light. This is why you see pro photgraphers using umbrellas, soft boxes, etc... rather than looking like a tightly focused beam, it looks more like a soft ball of light, reducing harsh shadows.
RiotNrrd