i took the electric plunge about a year ago on a mexican made stratocaster for about $500.... i have no idea about pickups or any of that terminology or tweaking.
the guitar is OK, i don't find it nearly as inspiring as my acoustic (which also happens to be a better guitar).. but it's not bad, either.. i think i made the right decision on a "starter" guitar.. you might want to look into those models.
by the way, for you guitar heroes out there.. what's the main sonic difference between a strat and a telecaster?