There are a number of really decent guitars at the beginner level. One line that gets really good reviews is the Yamaha Pacifica. I usually play Fenders myself (stratocaster). Their budget line is called Squier and some of them are pretty good. I would suggest you go in and handle several guitars, see which one feels right. Put a strap on the guitar and let it hang in front of you. Which one feels right? Also, once you have the brand/style picked out, try several of that same brand & style -- there will be differences. If I were you I'd put my money on the guitar and get a cheap amp at the pawn shop. If you do go to the Pawn shop, you can also find cheap guitars there. One undervalued but really good guitar is the Peavey Predator (USA model). You can find them used for about $100. Lastly, you can research nearly any guitar or amp on the harmony-central.com site. Tons of reviews and information there.