According to the people at work who actually know anything about guitars, that's actually a very good deal. The digital tuner on it is worth $90 to $100 on it's own, and you get a few other bits and pieces with it. I also picked up a 10 watt guitar amp as well for $30, and the pair of them cost $25 in delivery. So, for less than $205 I have a good, basic guitar and amp to learn to play on.
If you are interested, hurry. The last guitar they had on Catch of the Day sold out within a few hours.
EDIT: Sold Out