We have designed and operated a circuit based on a large-area current-biased Josephson junction whose two lowest energy quantum levels are used to implement a solid-state qubit. The circuit allows measurement of the qubit states with a fidelity of 85% while providing sufficient decoupling from external sources of relaxation and decoherence to allow coherent manipulation of the qubit state, as demonstrated by the observation of Rabi oscillations. This qubit circuit is the basis of a scalable quantum computer.