Out of curiosity, are you planning on getting an acoustic or an electric? (you should really get whichever you plan on playing in the long run)
Anyway, I started on a cheap acoustic, and then moved to a pretty cheap electric. It wasn't 'til about a year after I started playing that I realized how crummy they were, however, I wouldn't write them off completely, like some of the other people on here have told you to. I think these guitars are great for people who are just picking up guitar on an whim, and more than likely will just drop it in a month anyway (I'd say at least half of people who start playing guitar do this). In that case, price is probably your number one concern, as you don't want to spend too much money on something that'll be useless to you in the very near future.
If however, you're pretty sure you're gonna stick with it, and you're still just in the $100 price range, I would look into getting a used guitar. If you have a friend who knows a thing or two about guitar, have him bring you to a few pawn shops and take a look around -- there's usually a good deal or two in those places for $100 or less. If not, check out Ebay. I'd suggest looking into Ibanez's; I've always been impressed with they're quality for such cheap prices. Just take a look around for ones that close in the $100 range. You'll have yourself a decent guitar that won't hinder your playing when you're just starting out. You don't necessarily need an amp, but if you get one, I'd say just get an extremely small one; you can pick those up on Ebay for real cheap, and I and I'm sure everybody else on this board can give you a few suggestions if you're interested.
Don't be too discouraged by what a lot of people on this board tell you. You DON'T need a $300 or $400+ guitar just starting out. After years of playing, yes, we know they're crap, but for the newbie, a lot of it is all the same. Also, you may want to check around flea markets, because there are a lot of great deals there, and keep in mind that the more you are willing to spend on this stuff now, the greater quality you'll have with you down the road.