You may also see if you can find a Santa Cruz Blur LT on sale. I've read really good things about them, and when I have enough money to build up a FS I will probably go that route unless some other good frame that fits me is heavily discounted. For a steel hardtail I would probably go with a Blue Pig X. 29 vs 26...meh..with a good bike either will be a blast to ride. 29 over straight line stuff, 26 in more curvy tech stuff. Take a 1.5-2 inch high root for instance..the 29er would roll over it pretty decently, but the 26 sees this as a nice little mini ramp. I think that if you like it a bit rougher the 26 usually lends itself to being a bit more fun overall.