I've seen a couple of articles that talk about the guitar controllers for Rock Band 3.
Option 1 (the Mustang): A plastic controller in the style of the current controllers, but with buttons for every string and fret (egad!)
Option 2 (the Squire): A real electric guitar that has been designed specifically to work with the game...so it has some modifications that make it slightly different than a normal electric guitar. (a "mute" pad, to muffle the strings during gameplay, an xbox gamepad, and maybe some other things. It sounds like this guitar is a Midi guitar.
An earlier article I read seemed to indicate that a normal electric guitar would also work, so long as a $40 "modification kit" was purchased. But I haven't seen mention of this in a while.
My question is will a "normal" electric guitar work with Rock Band 3? If this mysterious "modification kit" is purchased? How about a Midi electric?