Is that your maximum price range? Because you could probably (with a little help) find a great / comfortable electric guitar for under $500 Then of course you can buy a pretty decent practice amp for the same...
The thing is, i learnt from experience, that it is harder to be motivated when you hear **** sounds coming out of your amp - but it doesn`t cost the earth (these days) to get (almost) what you might hear on your favourite CDs....
If thats out of reach, then personally i`m a fan of cheap nylon string guitars for those first 6 months of learning - they`re cheap, you can bash them around and they won`t kill your fingers
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No Bosses, Just Music
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