Ah yes... the good ol' flying V... "STATION!!!"
Well, you're jumping into a very rewarding hobby, but also one that can *gasp* be even more money- and time-demanding than guns.
I've been playing for a number of years now, and I have this advice: be enthusiastic. It's been my experience that lessons don't help nearly as much as REALLY REALLY wanting to play something by one of your favorite artists.
Find a player near you. Have him show you some basic basic chords. Tip: if you know all your basic open chords, you'll be able to fake about 90 percent of popular music. There's not many of them, and they're easy. Once you've played for a few months and can switch between all those, have him show you the minor pentatonic scale. That will allow you to solo like a mo'fo. Or at least, the above will give you enough knowledge to embarass yourself in front of real good players. But hey, they all started there too, right?
If you do want to go the lesson route, take your time selecting one. Find someone you gel with on a personal level and who likes similar music to you.
As for gear, I started on a Squier with a little 15 watt practice amp. I still have that guitar, although I don't play it anymore now that I have acquired a taste for custom built Carvins. As far as the starter models, I'd go with an epiphone over a squier (one of my stage guitars is an epiphone) but then again, you said you have smallish hands, yes? A gibson profile neck can be hard for someone with small hands. Should you get a squier, I'd recommend a fixed bridge as opposed to a tremolo, because tuning on a cheap trem is a pain. For starter gear, one of those "combo packs" that epiphone and squier makes will do you nicely. Many of them come with a small amp, strap, cord, tuner, and picks, etc.
This one in particular is a nice one for someone on a budget....
http://www.musiciansfriend.com/product/Epiphone-Les-Paul-Special-II-and-Amp-Pack?sku=513150don't worry too much about gear at this point. Good gear sounds no better when a beginner is playing it. Invest your money into books instead. Fretboard logic is good, but kinda complicated for a beginner. I recommend getting that after you've been playing for 6 months to a year. Troy stetina's books are good, his "metal lead guitar" and "metal rhythm guitar" are good starting points. The key with those books is to practice each exercise wth the CD until you can do it flawlessly before moving on to the next one.
Also, pick some artists you like but that have simple guitar parts and get tab books. Learn to read and play tab and you'll be all set.
Here's your open chords, but you'll want a guitar player to show them to you as well... It's easier to figure out when you see what a player's fingers are doing.
http://www.guitarforbeginners.com/openchords.htmlThe White Stripes is easy.. you can pick up one of their tab books and that should give you a song list that you can quickly play in a few months.
Good luck, and let me know if you have any more questions.
James