Alvarez all day long. Best bang for the buck by far, and right in your price range. My only acoustic guitar is a dreadnaught (lol) style Alvarez I picked up for like 175, and I haven't felt the need to upgrade for going on 3 years now. It plays great and sounds pretty good, so I'll bet for 500 you can get something really nice.
Originally Posted by spliff(TONE)
I've been meaning to buy a top of the line guitar for a while now, and just haven't been able to make up my mind. In a perfect world I'd be getting two top of the line guitars: one Martin and one sick as **** electric (Gibson, EGC, PRS....still can't decide). Probably end up getting the electric first.