Re: Electric Guitar.
Truth be told, your amp will probably play a bigger role in the sound of your guitar than the guitar itself. Make sure to buy something decent (I prefer Marshall). You probably want no less than a 50 watt amp. Anything smaller tends to sound like [censored], no matter the brand.
As for the guitar. As others have said, it's entirely dependent on what you want to play.
Are you into blues? I like nothing better than a Les Paul (priced around $350+). Rock? Get a Fender Strat. Country (ewww), you probably want a Telecaster. Also, the Gibson SG (probably out of your price range) is an excellent smooth sounding instrument.
Personally, I think if you're just starting out or don't play all that often, I'd forget getting an electric and focus on a nice acoustic guitar (Fender and Gibson both make decent beginner models for ~$300).
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