The little Fender cheapie classical (~$130)
I got one for those purposes , and it has been great for me. And it takes a beatin. I am actually suprised at how goos it sounds.
ahh.. buying a cheap guitar is always fun and exciting. You can surprise yourself with what you can find for so little money ! Shop around the second hand music stores and try all of them that is within your budget.
But the real deal I think is .... for another 9.99 dollars more than your budget, you get a SOLID TOP guitar. This guitar got positive reviews as well.
Though I do feel its a bit risky buying guitars over the net especially if you have never seen or hold it before but then if you trust reviews ... for so little money go for it.