I want to learn to play acoustic guitar, so I stopped by a local music store (specializing in string instruments) to look at guitars today. I was planning on a budget of about 200 to 250 dollars for a guitar, but while I was there saw a used Ovation acoustic for $399. It plays beautifully, and fits me well (as well as being absolutely beautiful, which is important in a shallow way. If I don't like the look, I won't play it, so it seems like the converse would also be true, no?) I didn't end up buying anything, since it was so far out of my price range, but having done more research and thought about it I'm now thinking it's a better deal than I thought.

So I guess my question is what things should I ask and check before buying the guitar? I know new Ovations are way more expensive than $400, but I don't know what the mark down is for used ones, or what to look at in a used guitar to make sure I'm not buying a damaged one. It didn't have any electronics, which is fine, since I'm not looking at playing anything that needs to be mic'd for a long time. (It also comes with a hard case included in the price, if that makes a difference.)

Any suggestions? Is this a good deal, or should I keep looking?
Thanks! (Also, assume my level of knowladge about guitars is near nothing, but I do have a solid knowladge of music.)
I've looked through that thread. I know there are plenty of good guitars in the $200-$300 range, but the ones they had at the store weren't as nice as the Ovation. My question is less what guitar should I look at, and more what should I be checking in any specific guitar I'm thinking of buying. reading my first post, there's a lot of irrelevant stuff. sorry....
I haven't played an Ovation under about $800 that I thought was worth its price tag, honestly. Their cheaper guitars are at the bottom of the barrel imo, and none of them sound good unplugged really. Where they truly shine is on stage when they are amplified. Hopefully that helps.

The Yamaha FG700 in that thread is about the best bang for your buck that you can find. If you want something that looks a little nicer, you can bump up to the FG730 which comes in a few different colors.

Partscaster/Tele into a bunch of pedals, a Maz 18 head, and a Z Best cab.
Don't get an Ovation unless you've got about a grand to blow. It may seem like a good idea because it looks nice, but after a few months of playing you're going to start to notice that it doesn't sound so great, and you'll realize that you could have gotten a much better guitar for your money.
If it's a good quality USED Ovation it might be one of those nice ones with a great price, but I avoid Ovations because the rounded back tends to slide off your leg if playing seated...VERY annoying!