At level 32, I can count on one hand the number of times I've been turned away from a group for being a Ranger. I can also been the MT for a lot of the dungeons I've done, with only slightly above average gear. Granted you can't really tank something at entry level, but once you are mid level for a zone it is no problem. This will likely change in higher levels, but my advice would be to stick to outdoor zones.
Being medium only won't hurt you as far as I know. Presently everything I have on my Ranger (wood*cough* Dark Elf) would fit on a Half Elf.
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