I had an aluminum Kona Dew hybrid that cost about $400 new and was sturdy and spry and pretty fast. Commuted, rode in the dirt, and did a tri on it. It has road wheels.
We now have a steel Kona Smoke commuter that cost $350 new and came with fenders already. It has mtn wheels. Extraordinarily comfy bike. Not as fast, but I just love it for toodling around. The new 2008 Smoke has 29 inch wheels, so it'll probably be faster.
I'm 5'8" and somewhere around 150 lbs with a 32 inch inseam, and ride a 56 cm Dew and a 20 inch Smoke. (size you need may vary, of course!)
www.konaworld.com
Get out and ride lots, and don't be afraid to try bikes that aren't quite what you were considering: you never know what you might fall in love with! 
Maybe even this lovely steel Kona Ute for $800: http://www.konaworld.com/08_ute.htm
Last edited by KnottedYet; 09-07-2007 at 05:44 AM.
"If Americans want to live the American Dream, they should go to Denmark." - Richard Wilkinson