Here's the bottom line up front: this guitar is playable, sounds good and is astonishingly good value. I can recommend it wholeheartedly to anyone on a budget. There are some rough edges, but it's a fundamentally good instrument.
The guitar arrived perfectly set up, with a low action and no fret buzz. Strummed acoustically, the instrument has a nice lively resonance with good sustain. Plugged in, the pickups sound remarkably good. They're similar to a classic PAF, with slightly hotter output. The knobs, switch and jack all work smoothly with no crackles or pops. The pickup selector switch is a bit wobbly, but that's to be expected of a vintage type switch.
Cosmetically, you can see where the money has been saved. The frets are slightly gritty. The fretboard is thin and has a lot of colour streaking. There are some glue traces around the inlays and the plastic parts are quite flimsy. The matte paint finish marks easily. None of this matters very much, because it doesn't affect how the instrument plays or sounds.
I did have one significant problem - one of the tuning heads was slipping during tuning, then failed completely within a week. I promptly received a replacement part under warranty, so I can't complain too much.
In summary, I think you'll be pleasantly surprised at how much guitar you're getting for the money.