Fender strat

You can get a nice, new Squier Strat (Fender's cousin) for under $200. Here is one model, there are others:

http://www.musiciansfriend.com/product/Squier-Affinity-Series-Fat-Strat-Electric-Guitar?sku=510629

Or you can get a new Made in Mexico (MIM) Fender Strat for around $400 or so. Here is one:

http://www.musiciansfriend.com/product/Fender-Standard-HSS-Stratocaster-Electric-Guitar?sku=516039

Or you can buy a used MIM Fender Strat for $250 or so. Here is one on Ebay (there are TONS on Ebay):

http://cgi.ebay.com/Gorgeous-Fender-Standard-Stratocaster-MIM-Strat-Guitar_W0QQitemZ230029707691QQihZ013QQcategoryZ38082QQssPageNameZWDVWQQrdZ1QQcmdZViewItem

Geez, I missed the part about you needing an amp too. On $250 to $300 for both, that's tough. You could get a Squier starter pack:

http://www.musiciansfriend.com/product/Squier-Strat-Pak-with-Frontman-15G-Electric-Guitar?sku=519633

Not sure what type of music your looking to play but if its a rock/blues type sound maybe a Squire 51 ($149) ith a Epi Valve Jr ($139.99) would get ya going with a good sound and start you right off with a nice tube amp sound.

Thats a decent starter pack for 300 bucks, and you won't feel the need to upgrade your amp, guy's that have been playing for years here swear by these amps as great practice amps.

Scott

If you want new gear. I would go for the Squier Affinity for $150 or the Squier Standard for $200. Just go to Musiciansfriend.com and take a look at the Squiers. I am sure that their are other low end brands that are good but I just like Fender.

Here's a pretty good amp for a great price. I bought one about 2 months ago and its worth every penny. Behringer GM110 with a 10inch speaker and 30 watts.

http://www.musiciansfriend.com/product/Behringer-Vintager-GM110-Combo-Amp?sku=480685

I think you can do pretty good with the amount of money that you have to spend.

Have Fun!