This is an excellent book to learn bluegrass guitar, especially with the CD. Don't be fooled, you should have a strong guitar foundation to really appreciate this book, otherwise it'll be too fast and technical for you. Traum starts off with good basics but quickly moves into very challenging fast paced licks. There is a lot to this book as well: many songs (rather pieces because they are complete and sound great) that will take you a while to get through, with enough variation that you won't get bored. I recommend exploring this book in full and giving it a chance - if will expand your guitar playing if nothing else.
I got somewhat bored and frustrated playing from tab books where the guitar sound is only one part of what I know the song to sound like (i.e. hey! I'm missing drums, bass, another guitar and a singer - no wonder it sounds so thin). This bluegrass style, although other instruments help, will have you playing full satisfying songs with nothing but yourself and your six-string. Plus, its fun and once you get past the corniness, those bluegrass musicians really know how to play. Talk about hot licks!
I would strongly recommend this book if you are considering a book on bluegrass (I took a chance and was immensely happy with it). Look for other Traum books, I have flat-pick country guitar (and love the secton on the Carter family) and my roommate has the Blues Bag and he plays it constantly and it sounds great. Traum is a natural born teacher.