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Personally, if I were in the market for a Strat, I would forget all about
buying a new one and look around the web (google.com, ebay, any vintage
dealers. etc) and try and find a '62 reissue from the early 80's to early
90's. These things were GREAT guitars and can be had for cheap if you can
stomach a not-so-attractive color, or, a bit more for a babydoll. You'll get
that big surf tone, a great neck with the rounder fretboard, and a generally
much better fit and finish than any American Standard I ever saw. Another
good thing about the '62's is the bridge - you get a 6 bolt instead of the 2
bolt of the AS, most guys will tell you this sounds better as it transfers
the resonance to the wood better than the 2 bolt setup. You're also getting
a good piece of wood (alder) instead of the sometimes-we-use-poplar AS
series.
As for the Squiers - check out Jeff Healey's "Live from London" VHS tape
(circa 1988). He uses a Squier with some aftermarket pickups. He gets a
great sound out of that thing and abuses the shit out of it with no
problems.
Another thing I'd look for in a strat - a Fernandes instead of Fender on
the rack of a pawn shop or the used section. These things are VERY well
made, and very similar to a mid-60's strat in weight, shape etc.
Pickups are your biggest worry, and with Fender's just released 62/65 Strat
pickup, you're worries are over for that surfin' Strat tone no matter what
plank you bolt them in.
Robb