if he's just starting off, i highly suggest an epiphone. they make great beginner guitars. they're gibsons lower make, but they are still good quality. i'd say that theyre lower models are good enough for a starter to intermediate player. they also have packages with decent amps and gig bags. its a really good investment.
I paid $120 for a used Peavey Patriot and I think it's an oft over looked brand that really is a bargain in the used rack.
Take a digital camera to your local shops and see what’s out there. Then search the models you are considering here http://www.musicgearreview.com That site has detailed reviews of several models and makes.