This is a tough one because I know price is an issue. I recommend getting a good guitar. You will learn faster, the tuning pegs won't slip and you will sooner develop an ear for tuning and playing. It can be very frustrating for a beginner to not have good neck action and not get the sounds that sound "right". You will learn faster with a good guitar.
So if you cant' afford a good new guitar musicians are always selling used instruments. Hold it, hear it. play basic stuff to see if it "fits" you. You can rent an axe until you find what you are looking for. A good teacher can recommend things to you - a teacher who isn't also a salesman. But even a good honest salesman can, too.
My recommendation for a beginner who wants a good guitar is a Compass, but that's just me. I like the crisp clear sound and easy neck action of a flamenco guitar. The Compass has a professional sound. You will want to keep it even if you graduate to finer instruments. Here is one for about $500. with case and shipping to America.
But ask around. If you aspire to a rock sound, don't get this, it is nylon, get a steel string guitar and ask someone else. The Compass is for finger picking, not a pick.
Guitarras Compass
