I got a Fender Mexicaster in the Summer of 1994. It is a great guitar for a beginner, but if you want something that is going to last and have a good sound for years, I wouldn't buy another one. Then again, I did beat the shit out of the thing. I got it for under $300 and I had the infamous Crate GX-15 amp that everyone and there mother has owned at some point. However, when playing live with a band in college, I learned to hate the thing because at a high volume, I couldn't get a decent sound out of the thing. But if you are just wanting to learn how to play, a fender mexican strat might be a good way to go. just be nice to it.
A little over a year ago with too much graduation money in my pocket, I decided I was going to buy a Gibson. I went to Guitar Center in Rockville and decided to go for a top of the line epiphone. I was uneasy about it at the time, but I think I made a good decision. Instead of buying the cheap bottom line Gibson, I got the highest end Epiphone Les Paul they make (Les Paul Standard Plus) for around $600. It sounds great to me and I don't think I'll play another fender (except maybe a jazzmaster) as long as I live. I think my next purchase, in many years when i'm rich, will be an old school Hagstrom or an Airline.