set little distance goals for the first week( make sure to increase them gradually) then after the first week pay more attention to time. that's what i did.
Well... this is what I did when I first started working on the treadmill.
Since I was soooooooooooo slow I always set a time goal. I walked during that set time always trying a little harder each session to go farther than the first.
Soon I was walking faster than I expected and it became too much so I changed it to a distance goal. Now I walk a minimum of 3 miles. If I get it done in 40 minutes I add 20 min of another cardio. If it takes me the whole hour then that's what it took...
I think you should mix it up... but in the beginning... TIME..
My problem is endurance so i would set a time/distance goal. As you can go farther then work on your speed. But its a personal preference. Do whatever is going to motivate you the most.