Buying a guitar is a very personal choice -- kinda like buying shoes -- so rather than having you go out and buy a guitar for your boyfriend and hand it to him, I'd rather see you get him a gift certificate and allow him to go pick one out for himself. Even though quality control is pretty good nowadays, there's always the chance that you'll wind up with a dud, so it's best to let the player try it out. I know that's not as much fun as laying a guitar case with a bow on him, but he will appreciate your thoughtfulness.
If he finds a guitar that he likes, most reputable dealers will do a setup if needed (string height, neck adjustment, etc.) as part of the package. That said, I've found that the Washburn D10 Acoustic Electric series is a good value in the price range you mention. They make several models, all with a cutaway and in a variety of colors, including a couple of very pretty quilt top models. The D10SCE is a good choice, especially because it has a solid spruce top. A solid top is desirable in that it is one piece of wood that vibrates more efficiently than a top that is made from tow separate pieces of wood, and that makes for better sound. Your purchase price range probably won't include a case, but cases usually run anywhere from $25 for a chipboard to $50+ for a padded gigbag or $130 0r so for a hardshell case. Good luck!
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Dave Molter, MGR Managing Editor/Bass Guitars Editor
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"Bass is the foundation of the band." -- William Murderface, Dethklok bassist
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Lakland 55-94; Hofner Icon; Kala U-Bass acoustic & solidbody; Stagg EUB; Genz-Genz Shuttle 6.0; Line 6 Lowdown Studio 110