That Yamaha Pacifica looks like a good bet for the electric side of things. One bit of advice that I'd offer to a beginner is don't get too caught up in the whole "the axe I gotta have" hype, especially if you're on a budget. There are guys out there that will have a long list of guitars they own, how they're "American made" or rare, no longer available, or modified by some tech luthier guru who died right after, or the best, how they're made from a species of tree that is now extinct.. (hey, don't laugh, it happened with those NS10-M speakers!)... or just how expensive their guitar/s are.

Now don't get me wrong. Lots guys have really good reason's for owning the guitars they have, and just see them as different tools for different jobs. And hey, there's nothing wrong with owning a nice instrument if you can afford it, no matter what your skill level. However, don't make the mistake of thinking that by owning an expensive guitar that will somehow make you a better player. It won't. Anatomically correct mother-of-pear seagulls inlaid on your fretboard isn't going to help you bend any smoother.

I think Jon really hits the price point well.. $300 if you shop carefully will buy you a lot of guitar. Remember you're going to pay for the name when you buy something like a Fender or Gibson. I own a mid-90's American Standard (made in America) Strat that I bought new. Just over a year ago I bought a Japanese Jackson that was on sale for $300. Being honest, the Jackson is a better built guitar. I'm not knocking Strats at all, they're great guitars. All I'm saying is that the Jackson has a better all-around finish than the Strat, and while they sound different, yes, the Jackson plays better.

Some of the brands like Ibanez, Kramer (owned by Gibson, I think) Yamaha, ESP, and Jackson just to name a few, offer really reasonably priced guitars that will serve you well for a long time. Then when you're really blazing and a rock star and can afford it, you can get the one with those seagulls...