Note: Stay away from the guitar/amp bundles in one box and from buying at Costco.
Setup #1 - Store bought

Yamaha Pacifica guitar - $290
Line 6 Spider 4 amp - $150
Guitar strap and cable - $15 - $20

Fender Squire guitar - $200
Fender Mustang 2 amp - $250
Guitar strap and cable - $15 - $20

Setup #3 - Store bought
Epiphone Les Paul Special 2 - $230
Vox VT20 Plus - $230
Guitar strap and cable - $15 - $20
Mix and match from the lists above and compare by plugging in and making some noise at your local music store.
If your inclined to buy used gear off Craiglist you can usually get everything you need for about half the price of new guitar gear. You also might be able add some pedals or effects to your rig if you save money by buying used equipment. Try to enlist the help of another more experienced guitar shopper and have some patience until the right piece of gear appears at the right price.
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