[OWK]

I agree...

You can usually find an overseas Strat, and a fairly decent amplifier, packaged together for a couple hundred dollars.

Also, I like the Yamaha Pacifica as a solid beginner electric for a very nice price.

[Moby Grape]

OWK, I think the Indonesian and the China Strats are NOT a good buy. The MEX Strats are okay. I agree that the Yamaha Pacificas are decent. The Korean Epiphones are pretty good, and the Korean Schecters with set necks are very good for the price.

[Hemingway's Ghost]

A solid-body Gretsch or any kind of an Ibanez isn't worth much, in my opinion. Hollow-bodied Gretschs are awesome, naturally, but you're not going to gain anything quality-wise from fixing up an old solid body.

I completely agree with Eddeche and OWK: get thy son a MexiTele. Five years ago I was looking for a cheap electirc solution after ditching my Gibson ES-335, my US-built Fender Strat, and my Rickenbacker Lennon model (the black and white teardrop one), and I came across a MexiTele that truth be told, blew away every single guitar I've ever owned except the US-built Strat. I cannot say enough good things about this axe: phenomenally distinct sound, an action as smooth as buttah, durable as all-hell, looks great, and cost me less than 3 bills.

[Benson_Carter]

I concur, go for a MEXICAN MADE FENDER STRAT. I am a Gibson style guy myself, I play a nice Hamer guitar, which is a cross between a Les Paul style and Paul Reed Smith, so I'm not a fan of Fenders, but they are really popular and I can attest that not only is the Mexican made Fender Stratocaster a solid instrument, as OWK says you can get them for a decent price with an amp combo.

Let him play the Gretsch when he is older and will not break/lose it.

the Fender Stratocaster is a good guitar for everything from country to jazz to metal to rock and roll. Although if he is into metal or really heavy rock, sooner or later he is going to want to rock out on your Gretsch!

good luck!