I would go with what you said in that last paragraph there. Just take him to a music store and buy an inexpensive guitar. Music stores always have sales after Christmas and you can bargain with the store owner to get an even better price. I paid something like $130 for my Cort Indonesian-made Strat clone this way and it plays great!
-Clay
Thank you so much for your advice earlier. I'm having a blast reading this thread!
(Now, what do you know about buying Barbie Dolls?) ;-)