I understand, but I have a fairly small gaming budget and can pick up a PG guitar for about $20.
Thanks. Please post or PM with the results.
This is your problem. You're viewing this entirely the wrong way. Rocksmith is not a "video game". It's a tool for people who want to learn how to play guitar. If you actually want to learn how to play guitar, save up a couple months of "gaming budget" and get somethng that won't make your efforts pointless.
You haven't had multiple people tell you this because they want to sound like elitist douchebags. But a $20 "guitar" is going to do nothing to convince you to keep practicing. Learning guitar isn't something that happens overnight. It's not only mentally challenging, but it's physically demanding as well. Your fingers are going to crack and bleed until they've calloused up enough to withstand the pressure from the strings.
As others have mentioned, it's even reasonably probable that the intonation and structural integrity of the Power Gig guitar isn't good enough for Rocksmith to even register all of the frets/strings (translation: even if it "works"...it might not recognize the correct notes or might not register every string pluck). I hate being somebody to tell people "don't play" but if $20 is really all you've got to buy a guitar...your efforts would be much better spent hitting up a friend or relative who wanted to impress some girl 10 years ago and has a dusty guitar sitting in their closet.