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Flamenco guitars are built lighter than classicals and with different woods and slightly different geometry. Flamenco players generally go for a significantly lower action than classical dudes too, as a little buzz here and there is perfectly acceptable. As Durero says the flamenco sound is brighter and more cutting with less sustain. Paco de Lucia (I believe) was the first to use what's known as 'flamenco negra' guitars - flamenco construction with classical woods (rosewood sides), basically a ballsier sounding guitar than typical.
For $500 you're not going to get anything exceptional and at this stage you're not going to be hearing the all the nuances. The most important thing is to try all the guitars in your price range and get the one which sounds and feels best to you. Don't make judgements based on brand, or by having played one example of a particular model. Spanish made guitars in particular tend to be quite inconsistent so you might find two or more of the same instrument that are significantly different.
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