Check out www.elderly.com for some nice used guitars from a VERY reputable dealer. The guys there will give you honest advice/evaluations & you can mail it back if you don't like it. I would go for a used 1996+ fender strat or an older japanese strat. ESP 400's were pretty nice too.
I just took a look at their web site, I like :
DANELECTRO 56 U3 REISSUE $245 (not a fender copy)
FENDER LONE STAR STRATOCASTER (1997)$700.00 (good quality)
FENDER CALIFORNIA STRATOCASTER (1997) $475 (ok/good quality)
G&L LEGACY $545.00 ( good quality but hard to resell )
TOM ANDERSON CLASSIC (1997) $1150 (top quality)
Of the above guitars I would personally spend the bucks and buy the tom anderson. That's what I own and it's head and shoulders better than my former ($800 new street price) fender american standard strat. They're handmade, sound like vintage strats, and are very easy to play. You'll have more capital invested but it will not lose value nor will it need much maintenance. Tom Anderson and crew only complete two each day. Beware that cheap guitars need quite a bit more maintenance than quality guitars.
For an amp, I highly recommend a new $75(?) pignose amp. If you want something with tube tone, try some of the fender hot rod series tube amps (300-500).
I just took a look at their web site, I like :
DANELECTRO 56 U3 REISSUE $245 (not a fender copy)
FENDER LONE STAR STRATOCASTER (1997)$700.00 (good quality)
FENDER CALIFORNIA STRATOCASTER (1997) $475 (ok/good quality)
G&L LEGACY $545.00 ( good quality but hard to resell )
TOM ANDERSON CLASSIC (1997) $1150 (top quality)
Of the above guitars I would personally spend the bucks and buy the tom anderson. That's what I own and it's head and shoulders better than my former ($800 new street price) fender american standard strat. They're handmade, sound like vintage strats, and are very easy to play. You'll have more capital invested but it will not lose value nor will it need much maintenance. Tom Anderson and crew only complete two each day. Beware that cheap guitars need quite a bit more maintenance than quality guitars.
For an amp, I highly recommend a new $75(?) pignose amp. If you want something with tube tone, try some of the fender hot rod series tube amps (300-500).