I'd say try to go for a Yamaha. I've found the quality of these is worth that slightly higher spend. If you spend too little money, you could end up with a guitar that is difficult to play and could put you off playing altogether.

I've seen the word "dreadnought" used in a few replies, but none of the models mentioned are "dreadnought"; I think people are confusing these with Jumbo size guitars. Dreadnoughts are bigger.