As a guitarist, I would also recommend the squire. It is the standard for beginners.
This is what I would get:
Squier® SE-100 Electric Pack - Comes with a guitar, cable, tuner and amplifier
DigiTech Grunge Distortion Pedal - A simple distortion pedal that sounds decent. Nevermind the "Grunge" name, its a good sounding pedal. You will need an extra instrument cable and a 9V battery.
That totals about $250 with shipping.
Now, if you wanted to go cheaper, I would check ebay for:
- A Squire Fender Electric Guitar
- A 20-watt amplifier (by Fender, Ibanez, Marshall or Crate)
- A distortion Pedal (made by DigiTech, DanElectro or Boss)
I would also recommend taking lessons at a local university or college. If you give there music department a call, they should have a teacher there or a student who will be willing to give you lessons ($20-50/week)
Good luck!