I used it when I went back to Pitt to get my MBA, primarily to take advantage of the PA tax deduction (I was still working full-time when I took the classes). I don't remember the returns since I only had it for 2.5 years, but it is a great investment vehicle if you're starting to save for someone who will have a couple of years of gaining interest before making any withdrawals.
Link to some quick facts regarding the plan -
http://www.pa529.com/learn/
ETA: One thing I want to point out that I make sure you're aware of - if you go the route of the Investment Plan, please take time to look at the portfolio expense ratios. Some of them are quite high (0.40%). My suggestion would be to start out in the growth-oriented portfolios while your children are still young, and as they approach 14-16 years old, you allocate the funds to the more conservative-based options.