What type of guitar is best for a beginner?

DO NOT BUY ANYTHING FROM TARGET OR WAL-MART! If you do, you're setting yourself up for failure, because those things are garbage! I don't know how many students I had that bough those things and they were so worthless that they hurt even ME to play on.

The first thing to consider is what you WANT to play. Once you figure that out, get something related. Most people recommend starting on an acoustic, because it'll be a little tougher on your fingers and help build the strength in your hands. Not to mention it'll be cheaper. Whatever you do, make sure you don't just pick one that looks cool. Remember that the most important aspects of an instrument are it's sound and comfortability. I recommend paying close attention to how far away the strings are from the fret board (this is called action). You want them to be fairly close so you don't have to push so hard to get a sound. You also don't want it so close that it causes buzzing sounds. Hope this helps a bit.

I prefer starting with a great guitar that I want to keep throughout all my different stages of learning.

The best type of guitar for a beginner should have some semblance to the type of guitar they ultimately would like to play. If you want to eventually shred, you should probably start on an electric. Just the same if you want to be a classical or flamenco guitarist, you should probably a get a classical guitar and become accustomed to its nylon strings and wide fretboard. If you're one of those types who just want something versatile, well either an electric or acoustic would work, though I will say electrics are easier to play and are capable of producing more timbres.

The rumor is that an Acoustic is better for beginners. I began with an electric, and I'm having slow progress, due mostly to lack of practice time.