BJ's Wholesale club, which has locations in the North East and Florida have just got in a stock of cheap guitars. The most expensive is a full size steel string acoustic for $90. It sounded really good for the price. They also have two smaller styles which are about $30 & $50 each.

I didn't try one of the smaller ones but if you have a BJ's in your area it might be worth taking a look.

My experience of similar cheap guitars is that if you are prepared to try a fey different ones you might luck out and get a good one.

Happy hunting,
Bert.