Patrish, this is a fairly wide open question as there are many good choices available (and many bad ones as well). One approach to consider is to talk to a local luthier (who presumably has no financial interest in selling you a guitar) about what you are looking for. Have him inspect anything you're considering buying if you don't feel confident about judging the instrument's basic quality. Then have him set it up for your playing style and ability so that you have a guitar that doesn't frustrate you unnecessarily. As far as the sound of the instrument, that is for you to judge with your personal preferences. If you look at and play a wide variety of different guitars, you'll get some sense of the choices available to you in this aspect.

I would second Dave's assessment of Seagull, based on a friend's pleasant experience with one. I would also suggest considering Yamaha, as they seem to make decent instruments at reasonable prices (I have two of them that I'm happy with). Happy shopping!