I first started with a really cheap acoustic, but quickly went to an electric. I think its easier to learn on an electric as the action (the distance between the string and fretboard) is generally lower making it easier to get the stings down in the beginning, especially for bar chords. Although, it also depends on what kind of music you're going to want to play, you can always branch out later as they both have their strong points

I wouldn't bother trying to learn how to read music first. Most guitar stuff is written in tab which is really easy to read, learning to read standard music may be a waste of time