Help picking Nikon Lenses for under $250

I bought a Nikon D5100 over the holidays. I'm still a beginner but I know for a fact the kit lens is awful. I was thinking of getting an AF-S DX VR Zoom-Nikkor 55-200mm f/4-5.6G IF-ED but I want to know if there's a better option for that price range. If anyone could help I would gladly appreciated 

Also could some explain to me what VR, ED, ETC on camera lenses means?