Leaning toward Blues, I'd suggest maybe MIM (Made in Mexico) Fender Strat (I'd personally go with S-S-S pick up config. H-S-S always looks somehow "wrong" to me :D ). You could go lower priced with a Squire Strat (ie: Vintage Modified line) and still get a decent guitar that you could upgrade parts on later if you desired.

Either way should leave you with a few hundred left for a nice Fender SuperChamp XD or VibroChamp XD amp. These have tube driven OD and modelling effects. I have the VibroChamp XD and would never sell it.