I say she needs to be somewhat above average.
I got a feeling a lot of people who are answering anything below that or have too high of standards are probably not in a relationship now or haven't been in a long time.
But lets face it, if your girl is ugly you might be cool with that, but its sort of admitting defeat, as if you can't get someone hotter. And even if you're cool dating some UG or fat chick or something who has a really good personality, you will feel insecure when walking with her down the street or showing her off to your friends.
It sounds shallow, but I know I certainly would feel slightly embarassed/ashamed in front of my friends, family, and just the general public if I was dating some UG who weights 300lbs.
So basically what I'm saying is that she has to look attractive to you, even if not a total knockout, and certainly has to be presentable so that you feel comfortable and have no hang ups about taking her out in public.
At the same time for those who have super high standards are also not seeing whats important. Sure having high standards is good, and of course the 10s make us want to do horrible, horrible things to them in bed, but you should know that even those who aren't 10s have a lot to offer and can get you off in bed also. Besides, if you're not a 10 but you expect to be only with 10s, its kind of hypocritical. You wouldn't want a girl to deny you even if you two click and are great together, just cause you don't look like Tom Cruise or whatever, so why would you do that to someone else?
Besides, the perfect 10 now isn't going to be a few years down the road. So what are you gonna do? Be one of those creepy old guys who is 50 and dating 18 year olds and never get married? Face it, looks are temporary, we all know tons of people (perhaps we are those people in some cases) who looked ugly or not so great in high school but are great looking now or vice versa. This pattern only continues throughout our lives, so the girl who maybe a 7 now in looks may become a 10 a few years from now, and the girl who is a 10 now may put on a few lbs and get a bad hair cut and become a 6 or 7.
It'd be dumb for you to miss out on what could be a good, fulfilling relationship just because she (or you) looked a little less than perfect for that one phase/moment in your life when you came across eachother.
Ultimately it comes down to the vibe you two have. If you get along well and are enjoying eachothers company, and she is presentable so that you are comfortable being with her in public and she can get you turned on, its all good.