(milohimself @ Jun 25 said:
I think I paid $80 a month for four 45 minute lessons a week a few years ago.
Milo, you do mean $80/month for ONE 45 minute lesson a week, don'tcha? Otherwise, you got a steal. I'd say $20/lesson is about average (although I haven't paid for musical instruction in years).
As to the "new guitar" question: first, what kind of music are you interested in playing? Obviously, acoustics are not meant to be distorted and chugged along at Dimebag speed. Also, you should find an instructor who enjoys or is proficient in that type. Example: if you want to learn Classical style, don't go pay a hair-band wannabe to teach you obscure metal scales by using tablature (a simplistic way to transcribe guitar music using 6 lines - representing strings - and numbers - representing the fret to play. Don't get me wrong, tab is great. . . .but not if you want to read music.
Honestly, unless you are dead-set on solo/hard-rock or heavy style, I'd consider picking up an acoustic or acoustic electric first. It's much cheaper to get a full rich sound - you don't need an amp or effects, the guitar does the hard work. Also, once you learn on an acoustic, electrics are oh-so-much easier to play. Plus, you can take it to the lake or the park or over to a friend's place to play without lugging other stuff around. You ought to be able to find a decent-sounding guitar to start with for less than $500, if you demand a new one. If you don't mind a consignment, you will certainly be able to spend much less.
One more thing: if you have a good friend who plays, I'd think about asking him or her to start you out with some simple chords and basics. That stuff can be taught by anybody who's decent and you will save some cash by not wasting that on an "over-qualified" teacher.