Speaking of carbon vs. steel- I have both. My first bike was a Jamis Quest- steel frame with carbon forks in the front and rear. It's been a great bike for me. I've ridden over 10,000 miles in two years with no problems at all.

One thing about steel- over time if you live in a wet or humid climate, it will, IF you aren't careful, have a tendency to rust at the bottom of the frame. Most steel bikes have a hole on the underneath for that very purpose- to keep water from collecting inside the tubes. My bike mechanic friend says to put some car paste wax on the frame from time to time to help it out. I need to do that at this point to preserve my frame.

I have a carbon bike from Scott.(CR 1) The difference between steel and carbon is rigidity. I am at the point in my cycling where I felt I would benefit from a higher end bike which is why I bought the Scott. However, this frame is designed for racing, so it is constructed a little differently than other carbon frames. They race a similar frame to mine in Europe and it seems to have done quite well. This is partly because of the weight. Carbon is light and rigid. Racers like that combo which is why you see carbon in the racing scene.

Most of the companies that make stock bikes have frames that are made in Taiwan. This isn't a bad thing. It's because labor is cheaper there and keeps the cost of a bike down. If you want to know more about carbon bikes and frames, check out how the manufacturers build them. I liked the Scott frame because of the way the carbon is wrapped. I don't think you need to worry about the manufacturer of the bike as much as the LBS from where you purchased the bike. That's where you will go to get any problems resolved most of the time. Specialized has been around awhile and has a great reputation so I wouldn't worry about them being big enough. Sometimes big is not necessarily good.

IF you are a beginner to cycling, I'd suggest steel. I enjoy riding my Jamis, even if it has taken a back seat to the Scott. Steel handles well and is comfortable for long rides. Try different bikes on the road to see what works best for you. That is the most important part.