You'll want to learn on an acoustic, and this is coming from someone who started on electric. Until you get past the beating on the strings part of the learning process, you're really not going to be able to make an electric sound good, and this is VERY detrimental to your learning for the simple fact that you will be discouraged. Also chords never clicked with me until I bought an acoustic, but I taught myself so meh, and everyone's different.
My first acoustic was/is a Yamaha F310. Its quite ragged now from camping trips/car rides/etc, but still plays like a champ after 5 years. I've lowered the action on it by sanding the saddle down because the factory setup had the strings quite high off of the fretboard, other than that it comes ready to go. If you're uncomfortable doing this yourself, you can take it to a luthier or probably a neighborhood guitar shop and have them set it up for you. All in all an excellent guitar for only $100.
Yamaha F310
As for strings I'm really only partial to one brand, but they are pricier than others:
Elixir Nanoweb Light Acoustic Strings
They're so fucking soft and silky on your fingers, well worth the 14 bucks if you've got some extra cash. I've used D'addario and Martin(eric clapton ones) strings, plus offbrand ones, and Elixirs are my favorite, but the others are fine if you're on a budget.
Oh and check MusiciansFriend.com for deals every now and then, as they have some awesome sales. I got an Epiphone Les Paul Standard Edition for $435 a couple of years ago, usually a $500+ guitar if I'm not mistaken.