right on man
i highly suggest looking used (pawn shop/craigslist/whatever).. you'll get such a better quality than a new one at a similar price.
i don't like those squire packs myself, don't know if the newer ones are any good, but i doubt it. maybe they'll be alright for you, but my buddy got one and it's just not fun to play IMO.
but for $300 or less for a full package, i think they may be your only option though (forget a foot pedal and anything else though, just guitar and amp. the more stuff bundled in the worse the quality)
if it's all you can get, you'll be fine with it for a bit. i know my buddy didn't get his money's worth from his though.
definatly look around and see what style of guitar fits you, i like the les paul style, but SG's are nice too. i'm actually not big on the strat's but i've never played a real good one.
you'll need to see what's most comfortable and what suites you.
hit up the music shop and hold a few different styles to see what you like. you could get the guys there to point out some decent cheap beginner guitars too.
a cheap second hand acoustic may almost be best though. first tosee if you'll actually enjoy playing (it'll be a lot cheaper than an electric) and if you learn the basics on that, you'll actually be a better guitar player than one who learned on an electric.. you can't cheat as much on the acoustic. (i actually hardly even play electric anymore, love jamming on the old acoustic)
not to mention it's not as much of a loss if you lose interest.
i have an epiphone les paul special.. it's a lower end guitar, but still nice enough.
whatever you decide, have fun and good luck man, it's a great hobby