I was one of those who didn't figure there could be much difference between a $150 guitar and a $800, $1200, or $1800 guitar. I started out with a hand-me-down acoustic Fender (it was in pretty poor shape) with nylon strings, and I was very frustrated that I didn't seem to be making much progress. Then I picked up a $200 Silvertone acoustic-electric, and found I was doing better, though still felt I was having more trouble than I should progressing. Finally, I went into the local Guitar Center and cast my eyes on a sun-burst red Ovation Delux. List price was $860, but they had this one marked down to $313 because it had a superficial scuff on the body. Five minutes of playing, and I plunked down the money. My playing really took off at that point.
Since then I've added one more guitar (and sold the Silvertone to a friend). The new one is also an Ovation, a limited edition 1778 Elite. List price is $1800, but this one I got for $619 (it was used, but otherwise in great shape). While I really like it, I still spend more time playing the Ovation Delux. It has a more mellow sound and, well, it's the guitar that really got me going, and got me writing music too.
Anyway FiLth, glad to hear you've found a guitar that's rekindled your passion. Stick with it.
And as always, check out
http://www.myspace.com/richowen61 to hear some of my original work. Drop by and leave a comment (good or bad) about my songs.