brother showed me his first electric guitar, a $200 Squier Strat, a month ago.
I'd never really tried one out before, and I must say I really liked it!
I can't see any way to get more bang for your buck than a Squier in that price range.
In my opinion it certainly outperforms several of the more expensive "budget-guitars".
Then again I'm quite biased since I'm a Fender guy, but I think most people will agree it's a very well put together axe for that kind of money.