just my 2 cents but what I'd do is get a moderate priced guitar.. go to the local music shop and mess around for a while with guitars you can afford. Don't even walk by something you don't think you're going to be able to pay for because if you really like it, then you're going to be shooting for something that plays like that.

I personally bought a Fender tex mex fat strat and I love that axe.. but be careful because they don't all play the same. Or you may want a tele because of the chet atkins, picking and finger style. The feedback will happen with a hollow body if you're playing loud. Other than that, just don't kill the sound of the guitar (if you choose a hollow) with distortion. you want the tone of the wood and pickups to shine thru.

Now for the amp. If you go and blow $350, sorry, have no clue what that translates into for your currency. you'll only have $100 for an amp... I'd do what the PRS man says (at least I think it was him) and grab a roland micro cube. I think they're like $115 us dollars and they really are amazing. The whole thing is about the size of a Nintendo Game cube and the sounds you can squeeze out of them are amazing.. it has a headphone jack, a few effects built in and can be used as a preamp. A buddy of mine used to use one in an open mic and it sounded great next to everything else that was there and it's only 2 watts or something like that..
here's the link
http://www.roland.com/products/en/Micro-CUBE/index.html

good luck and remember, don't settle and really look around and try things before you put your cash on the table. It's important that you really enjoy your instrument because at this stage of the game it's all about how far you want to take this.... A quality guitar will make a difference.
Either way, let us know how you make out.