Well here is my opinion. Unless you have time to look for a decent used guitar in your price range buy him a puppy. You just can't go after a good beginner type guitar without spending some time doing it. OR Have some one you know and trust who also is a decent musician do the leg work for you.
The sad fact is there are as many guitars in closets because they were too cheap or poorly set up or outright un playable as there are guitars that the new owner just lost interest in.
Nothing is a better desire killer for the budding guitarist than a guitar that can't be tuned or has an action that Superman couldn't press down. It is the type of stuff that is usually found on cheap guitars (Avoid QVC and Estaban like the plague).
Better an accoustic guitar that looks like hell but tunes right and plays well than a new formica and chrome accoustic or electric guitar that looks "Just Real Keen".
You can find used accoustic guitars in your price range that are good beginners. But you have to find them. I suggest an accoustiv very strongly. Otherwise you are looking at a guitar and an amp for the your $100.00 and that will guarranty even less quality.