I like that Strat mentioned above but it might be a tad bit limiting in the sound department, in my humble view. There are so many good guitars for cheap nowadays that the best bet would to simply go out and start playing the ones in your price range. Got to hear it before you buy it. As far as an amp goes, you can pick up a" Kustom 16R" for about $175 American. As my Marshall blew up for good a couple months ago, this is the amp I'm using now. I'm astonished at how good it sounds for its size ( stands about 15" high and is about 18" wide) and price. Sounds amazing at low volumes. Click on my signature and hear how it sounds if you like. Good luck, man.