Thanks for the kind replies folks. As some have mentioned, this is a 3/4 size guitar that is very suitable for kids to play. They are readily available for well under $300 new. All but one of the models in the AMI lineup have a solid cedar or spruce top which is awesome in this price range. I saw this used one for sale locally and read a few good reports on it and decided to go for it. It was a bit of a leap of faith when I bought it as the strings were extremely old and the action was quite high. The guitar didn't have a lot of wear, but is showing a few signs of neglect. For the price I didn't think it was a deal breaker, so I paid my money and was off to the local guitar shop for new strings and a replacement Tusq saddle. I've almost got the saddle sanded down to where I want it, and the new strings brought new life to a nice little instrument.
Yes, I wanted it for me... but I'm hoping my daughter takes an interest in it and learns a few chords. My son who is almost 4 is always showing an interest when I play and asks if he can strum along. It may well be that this becomes his first guitar! I believe this is the spruce top model, but I'm not 100% sure.
Peachhead, my apologies... I was plugged into my Toneport using the supplied Gearbox software for the Mic setting. I think a PocketPod would be a great way to go as well, and I'd like to get one myself for the portability factor.