Agree about the Sennheiser e835 - does everything a Shure SM58 does but better, and it's better at doubling as an instrument mic.

My favourite cheap mic is a pair of Behringer C2s. Should get a good guitar sound, and if you don't like them, no great loss as they sell brand new at a throwaway price. They'd be an odd choice for vocals, but if you like to keep them at a distance you might get away with it.
(nothing to do with PP&M, sorry)