I got my Fender Strat (Made in Mexico) for $400 at Long & McQuade, but that doesn't include an amp.

You could probably get a Fender Squier Strat package (guitar, strap, tuner, amp, patch cord, picks, video) for about that much, too.

I'd try to stretch the budget a bit, though. And don't be ashamed to check ebay or garage sales, etc.

Also, you should determine what "type" of guitar you prefer before you jump in. For example, do you like the Strat, LP, SG, Explorer style guitar? You can get the real thing for each, or a cheaper knock-off, which in some cases (e.g. LP-style guitars) are actually better than the real thing!

Let us know after you've done some research (on this forum, with Google, at harmony-central.com's user reviews section, on internet music store sites, ebay) and we'll give you our opinions on each selection. Actually, harmony-central's user reviews are pretty good, too, for giving you a general feel for the quality of an instrument.