Don,
Any of the Godin line of guitars will make you happy. For a first guitar, check out Seagull. They also have a line called Art & Lutherie that is a little less expensive. You can get a Seagull with a solid spruce or cedar top for less than $400. These are made in Canada and are really quite good. The action is always good and the sound is as good as a lot of much more expensive guitars. Also, don't be afraid of a used guitar. You can get some nice stuff pretty cheap when someone is looking to upgrade. Make sure whatever guitar you get is easy to play. Guitars with high action and poor playability (is this a word?) discourages beginners. Have fun!