I do believe he posted looking for an electric guitar, so I'll recommend the first one (still own it) I got. It, too, is a Yamaha. Yamaha EG112C2. It came in a pack with a little 10watt practice amp, cable, stand, strings, picks, and tuner. Everything you need to get your feet wet. This little beginners guitar has actually held up well and plays suprisingly well. The pickups are much better than can be expected from the price range, and with a good set-up it can play incredible.
If you want to raise your price range a little bit, I'd recommend a Made in Mexico Fender Strat. My local shop sells them for about $350 new. They are excellent guitars for beginners or experts.
Also, if you have the chance, ALWAYS play the guitar before you buy it. You can always pick up one guitar and think its crap, then pick up the exact same model of guitar and think that one is great.
Don't know if this applies to this thread, but I'll second Alvarez acoustics. I have the entry level RD-8 and couldn't be happier with it.