Peavey is good. Roland cubes (30) are also highly recommended by many for both their quality and value, but I've never had the pleasure of using one myself.

I would get a decent amp before a better guitar myself, but the only person here who can say what you'll enjoy more is yourself.

One advantage of getting a good guitar first is that you'll be better equipped to play a gig somewhere that already has a sound system (for example, at a chuch).