I got a jumbo cutaway one about 10 years back - my first steel-string guitar! Even though it's solid plywood top, back and sides, it's a not-half-bad instrument. A major issue with cheaper guitars is consistency though, so some may be good and some may not be - although at least build quality will usually be the same throughout today. Still, some will sound nice and some won't, so shop with your ears open. Also note that lower-end instruments are sensitive to having the "right" strings to counterbalance their weak points, so getting that right can dramatically improve things.

Graham.