Does the Reputation of the University Matter for a PhD?

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Beer-monster
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Hi guys, just wondering if I could get your opinions on a dilemma.

I've applied and been short-listed for a PhD studentship. The project seems very interesting and something I could really get into, and there is guaranteed funding, which is a plus.

The only bad point is the university where it is based (naming no names) does not have the best reputation for physics in teaching or research (or much else)

Should I be worried, does it matter much or is the project and the knowledge I gain more important?
 
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Well, if the place has a poor reputation for teaching or research, why are you applying there?
 
The project seemed really interesting, and I was applying to most places with interesting projects for grabs.
 
good yes i think going ahead is a good thing