Steve, I recommend used bikes over $99 rubbish from cheapo-mart. The latter will probably fall to bits within a year, probably while you are doing 30 mph down a hill. In six months, it will be a "used" bike anyway, just a used crap bike not a used good bike.
A decent second hand bike, 2-3 years old, for slightly more money, would be much wiser. The tricky things like gears and such might be better if new, but the (new) cheapo bikes will probably have old-style equipment anyway. 3 year old gears should be fine.
Beware cheapo suspension - not sure if you want it. Proper suspension uses gas dampers and springs, like in a car. Cheapo just has springs which cause bouncing which makes control harder, not easier. They just give the appearance of having cool suspension.
I have a few friends who are serious mountain bikers. When looking over a bike, the first thing they check is the brakes. Calipers are poor - disc brakes indicate quality. Easiest way to sort serious bikes from poser toys.
Is your son still growing? (God I hope so, since you said he is only 5 inches tall ...

) He might need to upsize his bike every year or two. No point splurging on a new bike.
[worrywart] Buy a good helmet for him, force him to wear it. Pain fades, bones heal, chicks dig scars ... but brain damage lasts forever. [/ww]