[phil_harmonic]

Another thing to consider is this. My first guitar was a Yamaha F-310 that I got for about what you are talking about. For my first guitar, it was okay. Once I knew I was serious about guitar and had a better idea of what I wanted (acoustic/electric, steel/nylon, size, shape, etc), I upgraded to a Taylor 314CE which was a super guitar and one I would be more than happy with even today. So who knows, you might do the same and upgrade to something better in time?

As to what to look for, I would go for playability first and formost. Things to consider are:
1) What is the "action" like (how high off the neck are the strings). You want as low an action as you can have without causing buzzing when stumming the strings.
2) How comfortable is the guitar as you hold it in playing position. Size and shape matter here (it's why I own a Grand Auditorium rather than a Dreadnaught).
3) How comfortable is the neck. To thick or thin can make it hard for you to play.
4) Nut width/string spacing - Of course, 90% of the guitars you will see will be 1 11/16" nut widths so you might not have much in the way of options here. I prefer the wider nut on the Taylor (1 3/4 = 1 12/16) over the standard 1 11/16 nut you find on most guitars.
5) String gauge - My Taylor uses light gauge strings and as such it's a bit easier on the fingers. Medium gauge strings require more pressure to fret. Now days, I play either wthout much notice.

After all these, consider tone, then looks. I agree, take someone with you if you can (I did when I bought my 1st guitar). Also, play a lot of guitars and perhaps don't rush into a decision. Maybe plan on taking a minimum of two trips to try out guitars so that you're more confident you're making the right choice.

Good luck!