I'm telling ya... the folks who had a similar discussion about guitars under $400 didn't listen...
JOHNSON GUITARS!!! They have NEW, SOLID-TOP GUITARS STARTING AT ROUGHLY 175-200 BUCKS! GO TO FOLKOFTHEWOOD.COM AND CHECK OUT THE SPECS! THEY USE MARTIN STRINGS AND HAVE A PRETTY GOOD FEEL RIGHT FROM THE FACTORY (I KNOW, I USED TO SELL 'EM)
TRUST ME, On a budget you'll thank me for this tip!
GospelPicker (who has had to wade through dozens of cheapies to find these!)
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sj