There's nothing wrong with the road, sealed all the way, a bit narrow but no problems and Tarra is a great stop along the way.
We stayed at Tarra for a week before going to Meandarra, where we stayed for another week. The military museum there is a real beaut. The pub's not bad either.
Tarra camp is a nice walk to town, good pub, a couple of good take a way food shops a good IGA and a huge 2nd hand shop that takes hours to explore.