Sql Server 2005 And Tree Structures

I am trying to traverse a tree structure like below,

1 Pets
--1.1 Cat
----1.1.1 Persian
----1.1.2 Bengal
--1.2 Dog
----1.2.1 Poodle
2 etc

I would like to be able to search by a keyword, i.e. Poodle, or the reference number, i.e. 1.2.1. I would prefer to do this all through a stored procedure if possible, it seems recursion is the way to go as the number of levels may increase in the future but i'm completely new to this. From what i've seen so far I would need a table structure with a parentID,NodeID,Name field and Primary key.

i.e,

ID...Name......Parent.....NodeID
1....Pets.........0............1
2....Cat..........1............1
3....Dog..........1............1
4....Persian.....2............1
5....Bengal......2............2
6....Poodle......3............1
etc

i've heard that SQL SERVER 2005 provides recursion through CTE, is this the recommended way/only way to achieve this?

Any tips on where to start would be really appreciated.