Originally Posted by: Otto Ray Sing
Your budget doesn't rule out good equipment, especially if you're willing to look at used items.

This is true, and the Squires, Epi Specials and probably Ibanez make a good initial investment as well. If you are just starting, I think you have a good budget to get a decent guitar. My tendancy - if you have 0 equipment - would be for a starter pack.

I would stick with your planned budget whatever you do. Not to be a downer, but if you scour the online music ads like I do, it's very disheartening to see the number of "I thought I'd like to play, but didn't, so I'm selling my guitar", or "I got this for my son, but he lost interest...", or "never found the time".... I makes me sad. :p

Come to think of it, I bought my Epi Special from a guy who played it 3 times then quit. His loss, my gain, though. :)