Here is a list of some of the online music shops that i think are top notch!

Highly strung

G.A.K.

Stagebeat

If you have any more, feel free to add on to the list.

In the US you can't beat this site, it's never let me down. Great prices, and I love the outlet store.

http://www.music123.com

problem is you can't try the instrument first.  I would never buy a musical instrument without playing it first - EVEN if it cost me more.  And its not enough to try the model in your local shop and then go and order one the "same".  if its a different tree then its a different guitar.  any guitar shop owner will tell you how many guitars they send back to the manufacturer cos they're not up to standard.  buying without trying is a HUGE risk.

well it's true, don't buy a guitar without playing it... and if you play it and like it then buy THAT one. however, for other gear... there are a few standard outlets

http://musiciansfriend.com (of course... they are the reference pricing standard)

http://sweetwater.com (another large retailer, decent prices)

http://zzounds.com

http://mercenary.com (often have good prices)

http://ebay.com (don't forget about eBay!)

I have to agree with this.  I got an expensive Martin (well expensive to me at about $1800 list), for a very good price online, and from a good shop.  However, the neck arrived with some buzz, which the shop instructed me to fix with some neck relief (thrus-rod adjustment).  After about a year I took it into my local expensive shop and asked for the action to be lowered.  Well, it turned out to be one that would have been sent back.  This shop claims to send a lot back.  They tweaked the action and it still wasn't right, so they reset the neck to fix it!!!   They noticed the neck was bowed when they first looked at it, but thought they could work around it.

Fortunately for me, Martin paid for it under warranty, but the cost normally would have been between $300-600 depending on who I believe.  I was told both from two different shops.

Another surprise, was that online shops (and I imagine real ones) sometimes substitute a cheaper case.  I got a Martin case with mine, but the local shop routinely included a better Martin case (with an arched top) with my model guitar.  So the price savings online was somewhat reduced when the case was factored in.

Also, the local shop includes free adjustments or custom setup for one year.  This costs me extra, of course ($65!!!), when I asked them to lower the action, since I had bought it elsewhere.

sunburststrat