I'd just like to say its really great you are giving him an oppurtunity to explore music at a young age, my parents thought it was a wate of time to buy any instrument no matter how cheap, and I didn't get to start working with music until I was 16. All those wasted years watching tv when I could have been working on my technical skill =/
I wouldn't pay too much for a childs guitar no matter what, I would buy him a bigger guitar by the time he is 10 or 11. I would probably buy a squier mini strat, or an ibanez brand. Ibanez always has great value for its price.
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