Re: Pine as a guitar wood?
I'll second the SX Tele as a great starting point for a project.
As a guitar, its put together quite well, and the neck feels good to me. So you're off to a great start, if all you want to do is really add new pups, switch, and pots. The finish is good, more than you should expect from a $109 guitar. I personally chose the sunburst, as the blond version looked a little too yellow for my own tastes when I saw it in the Rondo store.
As far as pupgrades go, even though there's the traditional chrome covered neckpup as stock issue, the body is already routed under the pickguard for a humbucker in the neck, so if that's your fancy, you can add the bucker with the mere purchase of a new pickguard. That was a wonderful surprise, which I soon took advantage of.
The hardware on the SX was decent enough. The tuners work fine, and the bridge adjustments were easy to intonate with accuracy. All the metal parts are clearly lower grade, softer metal than american parts, but for now they work and I didn't see a need to rush out and upgrade them until required. (Those string trees on the headstock seem really soft and will probably be the first things to fail one day). Some folks might want to upgrade the bridge plate and saddles right away, but as I said, they were more than acceptable and the axe feels great.