I would reccomend Music Centre Canada. Its on 37th Street, just south of 17th SW.
The guys there are great, and they have a huge selection of acoustics.
I personally bought an old acoustic from a pawn shop when I lived in Medicine Hat. It was actually a pretty good
guitar, but I got ripped off by about $100 because I didn't really know much.
My GF bought me a new Ibanez acoustic w/ pick-ups and an acoustic amp (yes, there is a difference).
That was about $400-$500, so while it may not be the most expensive thing out there, it sounds great. That is also considerably more than you could expect to spend also, and you can get some great deals out there, and most music stores will have used acoustics. When buying used, you will want to make sure that the frets are still ok, and the only way I can describe it would be sometimes when you play a specific note/chord, the fret will be bent and the fret and string will make almost no noise, and will sound really noticibly off. Even my new
guitar has this, its fixable, but since I don't solo, and the problem is in the 12+ fret range, it doesn't really bother me.
As per playing, I've been playing since I was in about grade 5, and got my first
guitar, a fender, and still have it.. all self taught.
What got me for acoustic was country music. I absolutely love playing along on my computer with country music. I play for about 30-60 minutes a day, sometimes more. What I found, was heavy metal and rock and roll was some times too hard for me to follow back then, as I couldn't play all the complex chord progressions or riffs. With country rythem, you can learn a lot of new chords that you may not have known about, but it also teaches you what chords sound good when played together etc.
Buy a capo. Great fun, and sounds cool to switch it up. A lot of country songs use capo's.
http://en.wikipedia.org/wiki/Capo
Other than that, practice practice practice. You'll never get better if you don't play almost every day, but on the same page, you have to enjoy it. I've bought 3 harmonicas, but never had the drive to learn. I just blow into it, then get fed up that I can't do it, and quit. I'm really glad I never did with
guitar.
Don't be afraid to explain to the guys/gals working that you may not be the most experienced, so ask them to explain what would be in your best interest. I find most musicians (as most who work there are) will not try to screw you over just to make the store a few more bucks.
There is nothing better than taking your old acoustic out camping and having a campfire jam at 2 am with beer and chicks... man, its something else...
Anyway, I'm rambling... excuse the possible terrible spelling, but I hope that helps a little, any other questions just ask, I'm no pro, but have been playing for a while, so if I can help, just ask.
Cheers,
James.
Edit: After re-reading your post, I see you didn't actually ask anything about playing, so i misread that... but i'll leave it up incase it helps you or someone else.