Oh yeah, Drew named a couple I was going to say something about but forgot. Takamini and Washburn are two fine acoustic guitar companies. Washburns have their own sound in my opinion and in the $700+ lines you will find very suitable offerings. I also have experience with some Takamini's which have all been very nice as well and you could easily find one of their guitars for the price range you are looking for that you would probably fall in love with.
I have a Fender Malibu ($395 new) which whenever people play it they comment on how good it sounds. I have picked up other Malibu guitars that I don't think sound as good as mine, but I use Martin #10 strings too which you won't normally find on a new Fender =)
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