I actually just got a brand new Epiphone LP Standard (Cherry Sunburst) less than two weeks ago and I think it's great. Just like any brand of guitars, though, there are going to be some dogs out there. Of course, with a cheaper brand, you may find MORE dogs than normal, but maybe I just got lucky.
I intended to get a Custom and was playing a couple of those, but the action was a bit on the high side, though there were a frets getting buzz. I didn't want to make a 650 dollar bet that straightening the neck would fix the problem (it didn't look bad just sighting it down). I started looking at Standards and wanted a Cherry, so the dude pulled a couple out of boxes from the back. He handed one to me and I knew that was the one. It just felt and played perfect, the intonation was on...the whole nine yards. The only problem was that there's what looks like a smudge and some scratching on the fretboard right below the nut, but it isn't real evident from a step away (or when you're playing), so I got the salesdude to knock 60 bucks off for that.
I put it on layaway and started getting second thoughts about that smudge looking thing, so when I went back to pick it up, I played a few others around the store, and then asked him to bring that one out. Again, as soon as it was in my hands, I knew I HAD to get it.
Moral of the story is ummm....I dunno. As with most guitars, it'll probably need a setup out of the box (I'm sure it wouldn't hurt to do a small tweaking with mine, but I'll wait on that), but there are some gems out there if you care to look. Don't let accidentally sitting down with a bad one deter you.
Finally *gasps for breath* I hear of a few people changing the tuners and the guys over at Epiphone's forums highly suggest getting a bone nut (they say the latter almost always fixes any tuning stability probs), and a lot like to change over to Gibson pickups. As for the cutaway, I couldn't say whether it's wider than a Gibson or not, but that would make sense. My Epi is the first guitar I've had in years where I can actually reach the upper frets comfortably.
So yeah, I recommend Epi's.
