Recommendations for a lower cost, good sounding SMALL guitar?

There's a lot of talk about how guitar size is unimportant.
Unfortunately, being 4'11 and 90 lbs does make guitar size an issue.
On full bodied guitars, the tend to be fairly wide, though there is
some variance. I am almost completely unable to reach the strings to
strum on a 'normal' guitar. I end up in an awkward position and while
I can play it is hardly comfortable. Playing time is limited because
of the pain caused by the awkward position. I've been stealing
smaller friend's guitars for years, as my full size epiphone is no fun
to play.
Recently I stayed at a hostel and borrowed the guitar from the front
desk. It was a sovereign, which is a name I have never heard.
Surprisingly it had decent sound and stayed completely in tune. Even
better, I enjoyed playing and was at it for over an hour with no pain.
I believe it may have been a 3/4 size guitar, as it was MUCH smaller
in all dimensions then mine, but not so small that I felt as though I
was holding a toy. It simply *fit*.
Unfortuntely my knowledge of guitars has been strictly limited to full
size guitars. I'm curious to know if anyone has any knowledge of
either the sovereign, or any decent prices guitars that may be
suitable. I play casually, around the house, when I'm out at parties
or camping. I'm looking for something that sounds decent but doesn't
break my (fairly low) bank account, and actually fits my size. Most
12 year olds I work with are at least 4 inches taller than me and
outweigh me by a fair bit, for another size reference.

Any information is appreciated. I'm not as concerned about the neck
size as I am about being able to reach the strings.

So in short:
I'm looking for recommendations/suggestions for a smaller, thin/slim
guitar with decent sound and ability to hold tune. Reasonably priced
and not too difficult to locate. Currently located in Ontario, Canada.