I've been playing for about 8 years now. Starting with an acoustic (as I did) will help train your fingers so when you make a jump to electric, it will be very easy to play. I prefer acoustic as I predominantly play bluegrass, country, and fingerstyle stuff. My first "real" acoustic was a Taylor 314. Taylors have a shallower neck compared to other acoustics and the action is set up pretty low from the factory. The build quality is second to none. They have two entry level guitars out now. The 110 is what I'd recommend.
http://taylorguitars.com/guitars/model.aspx?model=110 It may be a bit above your price range (avg. price is about $550). Taylor also has the "baby" line. There is a "big baby" that is around $400, and it's a regular dreadnaught size guitar. You could find either used on eBay to fit them into your budget. If you can, go for these. You will be so amazed by how well the guitar feels, sounds, and is made. If you do buy on eBay, do yourself a favor and make sure the one you buy is from a reputable seller and the photos are of the actual guitar, not the stock company photos. I got screwed by bidding on an auction like that.
Also, a very important aspect of playing the guitar (especially starting out) is to have an experienced, personable instructor. I know you want to teach yourself, but it is not an easy task. You'll have to be extremely motivated to make it on your own. I stress this because once you get good at it, playing the guitar is very rewarding and enjoyable. It's a good, clean hobby. There is nothing more exciting when you're an avid guitarist than strolling through your local high-end guitar shop and picking out your next guitar. And trust me, detailing will pay for a high end guitar in time.
Hope this helps and good luck!
