There's nothing wrong with a starter pack for a starter. In fact, for your price range, that is probably the best way to go if you want new equiptment. You can find the squier strat or tele packages for around $150-175 if you're willing to put the time into finding the deal. Or you could go with epiphone... unfortunately, in that price range you're basically limited to the les paul special II package deal which, for the money, is a lesser guitar. If it were me, I'd go for the Tele.
If you're not hung up on getting a new set-up, the route I would take would be to start going to pawn shops and even garage sales with guitars advertised. I recently found an Epiphone Dr-100 acoustic at a garage sale, it was in perfect condition with a case and tuner for $30. I kept the tuner and sold the rest for $100 about a week later. The deals are out there... do your homework and have a good idea of what you're looking for before you start looking.
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