[font=trebuchet ms]With the budget you have, I suggest getting something used instead of new. Generally, any bad materials or workmanship has already made itself known, so you have less to worry about on that count, and you can usually get good value for your money. So start haunting your local music shop's used & consignment racks, and check out the pawnshops.

And don't limit yourseld to just acoustic guitars unless that's really what you want. An elctric-acoustic or a hollow-body electric may be easier to play than an acoustic in your price range. I recently sold a Washburn Festival Series electric-acoustic for $200US that was worth over $500 new.[/font]