I suggest you check out GVH Bikes online. Their prices on build kits are hard to beat, and they will even assemble the bike for just $75. They are building my bike as we speak. With your tight budget, it might be the way to go. I'm all for supporting the LBS, but sometimes you just can't pass up a great deal.
I picked up a beautiful used carbon frame for $640 on Ebay, had it shipped directly to GVH for a nice full 105 build. The whole deal is costing me exactly $1700 with all the shipping and every part.
If you get a nice used frameset on Ebay or elsewhere for $500 or so, you could get the same thing done in your price range...




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