I borrowed my friends guitar in order to get my nephew to play.  It is junk.  With new strings, it still sounds lousy.  The tuning machines are poor quality, one of the pegs keeps popping out, and the action is lousy (like any guitar comes out of the box unfortunately).  I have had several guitars.  While it is possible to buy a $130 guitar that is o-kaaay, you still need a luthier to set it up.  In my opinion you get what you pay for and there is a reason that Martins and Gibsons cost over $2000 for a decent instrument.  That aside, for kids starting out I would avoid this piece of junk and get something better, even an Epiphone maybe.