I'm driving myself insane searching for a bike. My grandfather found an old Huffy in the bushes behind his house and gave it to me, which reinvigorated my interest in bicycling. It's kind of pathetic and is falling apart. At the moment, I can only spend about $300-400, maybe $500. I've been to most of the bike shops around the city and have been watching Craigslist. When I first started my search, I was looking for a used road bike. Apparently this is impossible because I'm 5'4" with a 29" inseam and all of the used bikes that would fit me sell out as soon as they come in. I'm not set on a road bike, I'm just totally in love with drop bars and road tires. Now I'm thinking about a few things: I can buy a new commuter and covet every bike with drop bars. I looked at the Trek 7.2fx, Jamis Coda, and KHS Urban Xpress. If I get one and like it enough, I can think about doing a drop bar conversion? Or, as someone at a LBS suggested, get a mountain bike and add road tires, and drop bars. I live outside of a Portland in a part of town with a few nasty (to me, I guess) hills and need something that will make climbing possible. I'm not looking to ride really long distances, but would like to give my car (and wallet) a rest and ride to my jobs around town (I'm a pet sitter/dog walker), which range from 10-20 miles roundtrip. Also, something that can accommodate a rear and maybe front rack.

The problem with Craigslist is that I know relatively little about bikes, so I doubt I'd know if I was wasting my money. Other than a test ride to see if it fits me and shifts well, what should I look for to see that I'm getting a decent bike?

What should I do? New commuter, convert an old mountain bike, or search Craigslist and hope for something good?

Oh, and hello! I found this forum last night and was happy to find a friendly, welcoming place to ask my questions.