You don't want to use that book! It's old, the grammatical understanding of the language was really far off at the time it was written, and it is specifically intended for people who need to read documents written around the time the textbook was written (as in, late 19th century newspapers and books, etc.).
You'll want to start with Fuller's An Introduction to Literary Chinese, it's really the best thing out there. Its goal is to get you able to actually read in the language, rather than translating in your head or parsing the sentence out the way classical languages are often taught, and I think it achieves this goal fairly well. After I studied Fuller, I also used Harold Shadick's A First Course in Literary Chinese. Basically I just used it as a reader rather than as a textbook, because his grammatical analysis is a little outdated and clunky. You'll also want Pulleyblank's Outline of Classical Chinese Grammar as a reference.
Regular dictionaries won't suffice for this stuff, so you'll also want to at least grab a copy of 古漢語常用字字典 by 王力 (preferably in traditional characters, if you're serious about learning classical Chinese), which unfortunately may take some tracking down these days. If you're in China or Hong Kong it should be easy to find, and if you're in Taiwan you might be able to find it at some of the mainland import bookstores. Otherwise you can order it from Sanmin, but it will take a month before they ship it, because it isn't in the warehouse right now. Pleco also has a classical Chinese dictionary coming out soon, so I'd recommend getting that as well.
Once you've finished Fuller and Shadick, I'd recommend (if your modern Chinese is up to the task) getting one of the classical Chinese readers that high school kids in Taiwan use. I have 文言文40篇大探索, but there are other good ones around too.
After that, it's whatever you want to do. At this point you're at what I consider a minimum competency level to be considered fluent in Chinese. That is, you're able to read stuff that high school kids can read, just probably not as quickly. Reaching this level will also have a huge impact on your reading ability in modern Chinese. But if you want or need to go further (let's say you're doing graduate school in Chinese literature), then you can move on to some of the 大學國文 readers, or even better (if you're really serious) would be the 古代漢語 series, again by 王力. You'll probably also want some of the 三民書局 readers (the ones in teal jackets), or at least the 古文觀止.
This will, of course, take some time. Once you finish Fuller and Shadick, you'll probably find that your ability in modern Chinese is what's holding you back from advancing further in classical Chinese, because after that all your material will only be in Chinese. Of course, if your two years of study in Chinese has been in Taiwan or China, that may not be the case. If its been at an American university, then you're going to want to try to spend some time in one of those countries if at all possible. Preferably Taiwan, IMO, because China tends to put a Marxist spin on everything, including commentaries on classical texts. But to reach a high level of ability in Classical Chinese, you need to be competent in modern Chinese, because all the best references are written in that language, not English. Of course, some are in Japanese, so if you can read that you've got a nice leg up.
Good luck.
