My first guitar was (and still is) a Mexican Fender Strat. It cost me half the price of a californian yet after 4 years of intense practice it now sounds better than any other strat I've heard.

Very few new guitars match up to the playability and feel of my own. However I was looking at an Ibanez ergodyne the other week and it was SWEET. So easy to play and it sounded fantastic.

That's my advice if you're on a budget: Ergodyne or Mex Strat - Cheap guitars that don't play or look cheap.