So ... now I'm learning guitar.
I started off by getting myself a cheap Squire SA-105 Dreadnought acoustic pack from Argos for £79.99, which came with a stand, tuner, strap and bag. It's a full size model and whilst if feels large to play it does have a nice tone and loud sound.
To complement this I also wanted an electric guitar and eventually decided on a budget Epiphone Les Paul Special II in vintage sunburst from Academy of Sound (Hanley) for £119.99. The price was the main seller but since I prefer a more 'rockier' sound then the Les Paul twin Humbucker pick-ups are more suitable.
I decided on the Fender Mustang I V2 from Mann's Music for £89. This is a small 20W (1x8") modelling amp with 24 different preset amp models along with other and effects controls. Great value for money. It is also USB enabled and comes with Fender FUSE software for greater custom modelling.
Now all I have to do is learn to play 'em.
The internet is full of lessons and tutorials. The best I've found are the FREE lessons form JustinGuitar.com, nicely structured and clearly instructed (I think I may have to donate or buy a songbook). Another good one is the GuitarJamz guy, whose videos are all over YouTube.