That's a pretty sweet looking Yamaha, Rob, seems like a very good price for a solid spruce top and electronics.
I bought a Yamaha FG 180 back in 1968 for $89 and still have it. Sounds good, even with a plywood top.
I fiddled with the action just a few years after I got it and now it has the lowest, easiest action of any acoustic I've played, although the tone isn't what it was before I messed with it! I later learned that the angle of the string over the bridge is critical to the tone, and I must have reduced the angle too much in the interest of lowering the strings.
Point is, I still have it and have got my money back out of that guitar X10.
I think Yamahas can sound great.
Next step is an open back speaker cabinet for something like this:
http://tinyurl.com/35gqnm