Hey, I have a problem with my electric, it sounds like crap. I play acoustic mainly and thought I would get an electric on the cheap. Ended up with a Johnson guitar and a 10watt drive amp but it just sounds like crap when I play it. I'm getting way to much feedback off the amp to get it to sound anything like the songs I'm playing. I have had a look at the pick ups on the guitar and I can see that the magnets (I think that's what they are) are at different depths in the pick up. Is this meant to be the case? Does anyone know if there are easy fixes to this, or if the gear I have is just crap. I'm playing with a Johnson Js-800 Del Mar Standard and a 10watt Drive amp.

You have staggered pickups, nothing unusual there. But yes, that guitar and amp combo will not produce anything musical sounding, just audio clipping with a fundamental note floating around in there somewhere. I suggest you take the pickguard and strings off and as ethan_hanus says, make a nice fire. The paint may be a bit toxic but the maple and alder should burn wonderfully.
Shitty equipment creates shitty sound. If you want to get new gear I don't mind suggesting some that's cheap and gives you half decent sound and tonal options. Don't expect to pay $100 for any amp or guitar and get quality sound.
Well first off, turn ur gain down on ur amp. Even expensive gear will feedback. Take the back plate off, and stuff some foam in your springs, and that should also help with certain feedback issues. Start with the gain low on the amp. Then bring it up until the noise is as bearable as u want it. It should sound ok then. Remember, with singlecoil pickups, theres a ton of noise, but the clean channel should sound amazing.