OK, teasing a little more info out, he wants an accoustic (and I'll keep an eye out for an Electric
)
This has good reviews for a 3/4 size :
Ibanez IJV30 Quickstart 3/4 Acoustic Guitar Pack and more Value Package Acoustic Guitars at GuitarCenter.com.
Full size might be a bit much and $120 now is still $80 next year if he goes bigger... Hmmmm
Perhaps I'll drag him to Guitar center - though that would spoil any surprise...