I'm a mtn biker, just bought a road bike. Those are all good questions, but I am not knowlegeable enough to help on some. My mountain bike is a TREK6700, which is what I would call a step above entry level, and I paid about 800 for it. For that price, I bought a Specialized Allez Sport, which I would also call a step above entry level. If you go to road biking sites, eg. Roadbike review, you can read alot about bikes and get a feel for what's out there. Most of the roadies suggested getting better than the "Sora" level of Shimano components, and go for Tiagra, 105 or better. I think the Shimano site actually has a chart that describes the levels of components. After reading alot, I went to several bike shops, talked with guys, asked lots of questions, tried a few bikes. The road bikes fit differently, I'm sure you know, so make sure that when you buy, someone spends a bit of time with you personalizing the adjustments. As for the pedals, well, I didn't want to buy new shoes, so I had them put mountain bike pedals on them. They work fine. By the way, Shimano does make a road pedal that accommodates those cleats, but I read that those pedals are one-sided, which makes them a pain to get into. That's why I went with the mtn. pedals.