Hi all!

I am just getting into cycling. After weeks of driving my SO and the LBS guys nuts, I have decided that I would like:

-a sport touring bike (I want to do a century ride this year, but will mainly use this bike for commuting)

- a steel frame (I love the look/history/durability of simple steel frames)

- something with gears (relocating to SF in a year)

- I like the option of drop bars, but overall would prefer a more upright rather than racing-style ride

My problem here is that I live on a remote island, and I'm 5'0 and most LBS's don't stock the shorter bikes. I am wondering if it is smart to get a used bike in the $400-500 range first (like maybe an old Eros if I could find it), since I am a beginner and am not sure what I really need/want in a bike. I scour ebay and craigslist everyday! I even have mom in Portland searching for deals for me (we're the same size).

I am lusting after the Bianchis, and really like the 2010 Volpe. I would save up for and spend the $1100 on the new Volpe if it were the smarter purchase overall (although, what's up with the Bianchi price increases every year)??

I have also considered the Jamis Aurora but it is too big, I think. I need something 42-44cm and with a top tube of around 493mm. People have recommended the Surly LHT, but I've read it is heavy. I have a meager budget (up to $1200 at the *very very* high end), so custom builds are out.

My other concern is tire size. The LBS recommended 650 wheels, but I've never actually tried to ride either (the 650 or the 700). The new Volpe comes with 700 wheels. I don't know if I could manage on those. It's hard to try these out because my bike would need to be special ordered.

I would love to hear from others who have been in this situation. Did anyone get a shorter frame Bianchi and have success?

Many thanks in advance!