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A cheap acoustic is probably the most cost effective (and endearing to neighbors)way to go. There are a lot of acoustics that are decent in the $200 range- I'd recommend the entry level Yamahas for that, they seem to be the best quality at that level. Also the Takamine's.
Don't forget to also purchase a cheap tuner-that's critical. If you can't tune the thing, everything sounds awful and then you'll be too demoralized to practice.
However, if'n you want to ROCK, I'd recommend the Squier series by Fender, they're decent and cheap-I think they make a package deal with amp and guitar and cord for like $230 or so.
Hope that helps.
Chris
who, by the way, is a pro.
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