How old is Cammo mate? If he/she is under15, I would go for a nylon string and I would stick to a reputable brand. If over 15, I would go straight to a steel string.
Brands I would consider are Cort (1st choice for value for money), Yamaha and Ibanez. There are some other good brands around and a nylon string guitar set up should cost you well under $100 with a bag and a set of spare strings.
I'd consider buying a better brand second-hand. When you're buying, the things you want to check for are warping of anything, and look around all of the components (fret board, where the neck joins the body, bridge, etc. If you see glue - run away screaming.
It's hard to buy a really crap guitar these days, but I would consider having it set up correctly. I spent $65 recently having my guitars set up and it has made my playing MUCH easier (and hence I'm making better progress than I was. Even my wife
would might agree
). The music shop would lower the string to bring them close to the fret board (called lowering the action) and that has a significant impact.
I have a Martin D1, which is like the Ferrari of guitars, but I can't play it. So I bought a Cort for about $300 and I can bang out a few notes without tearing holes in my fingers
For lessons - Check out Marty Schwartz on YouTube.