It's a very tricky style to learn but very interesting to learn. It is somewhat of a lifestyle to these players as most who are any good grew up on it. There are lots of good videos on you tube - check out Sabicas, Carlos Montoya, Paco de Lucia, Vincente Gomez, and Juan Serrano. Also check out the Gipsy Kings music.
A great website is
www.lasonanta.eu
Also Giananni and Alhambra also make nice flamenco guitars that you might be able to find in your price range maybe used if not new. I would go for a Cordoba C5, C7 or GK if you can swing it or find a good used one. I think they have better tone and detail in design then Yamaha.
I found a used Cordoba GK on ebay (you'll find them on craigslist too) here is the link:
http://www.ebay.com/itm/Cordoba-GK-S...ht_1379wt_1270