I use it along with my humidity device (http://www.heartfeltindustries.com/proddetail.asp?prod=RH_Small_65)
Can't speak to the pipe tobacco, but if your cigars aren't too far gone(dry), you can re-humidify them. Ramp up the relative humdity in your box about ten percentage points and let the cigars sit in that environment for 2-3 days. Then repeat the procedure until you get the box up to somewhere between 65-70% RH.
As long as it's lined with spanish cedar, there's nothing wrong with an inexpensive humidor. With any humidor you have to season (hydrate) it first, and calibrate the hygrometer (sp?) for it to do any good. BTW, I wouldn't put pipe tobacco in a humidor. I use mason jars. Have fun.