About a month ago I decided to learn the guitar. I sorted out some lessons with a friend of mine so all that was left, was to find a suitable and inexpensive guitar. After researching it on the internet, I discovered that the Fender Squire was a solid beginners guitar and a quick ebay search later I found a fender starter kit on the cheap.
The guitar arrived promptly and really looked the part. I bought mine in the 'Sunburst' style'. I plugged it into the supplied amplifier and it all seemed to sound ok. This was confirmed by my friend (who teaches for a living), after he had tuned it up. He told me that it seemed to be well put together and looked like it was made with quality parts. I can tell you now that after a month there is no sign of any weaknesses in manufacture and it still plays as good as new.
I conclusion this instrument is a joy to play and is definitely a great place to start for budding musicians. The only things I recommend that you get, are a spare set of strings (it pays to be prepared) and a better case, because the one that comes packaged really is not very practical. It is awkward to hold and made of very flimsy material.