I would suggest a Squire or Epiphone. They are the lower quality of Fender and Gibson... but they make great starter guitars. I still play my Fender DG-7 every now and then. It was my first guitar and it was only 100 dollars. You can check out www.musiciansfriend.com and go to the acoustic section and search for an acoustic by price. Fender also makes some fairly well priced acoustics in the 200 dollar range. Just have a look around.