Like Michael asked, what do you want out of the amp as far as tone goes? What's the rest of your rig? Might be able to get by with that amp with a pickup change on your guitar, or maybe, the right pedal.
In another direction, if you don't have a lot of room, or aren't playing out, maybe you don't need an amp and can get by with one of the computer based rigs. Lots of room for tweaking, and you'll never piss off the wife or neighbors.
I agree, pup changes make a huge difference but with out quality amp/interface it'd be pointless.
There are great PC interfaces out there, I use an Axe FX Ultra into a Mackie thump powered wedge that can also be used for direct home recording or sent into the soundboard at a venue. Only thing is my exact setup isn't .....ummmm....cheap. Music is my first true hobby/love.
If you could extend your budget up to say the 200ish range you could look into a Line 6 POD X3 or one of their HD series. Both of those are effects processors & recording interfaces for your PC. Both sound pretty good and will provide a way better sound than any amp in that price range.
With "most" gear you get what you pay for. All gear and guitars are playable but you pay for the quality and ease of playability.
I've been playing music for about 20yrs and have been through way more gear than anyone should so if you have any specific questions on gear, effects, guitars/pickups, guitar setups (action, intonation, ect..) feel free to PM me.