I test rode bikes from these guys and like 'em:
http://publicbikes.com/
I'd stay away from the "D8" models though, if you want something more upright. They're a bit more aggressive and hunched over than the "M8" (Mixte) and "C8" (Dutch-style) models, which are a lot more upright.
Hey SlimRider, I thought all of the Linus "8" models (Dutchi 8, Mixte 8, Roadster 8) were 100% chromoly? I know that the 1- and 3-speed models are "Hi-Ten".
Edit: I forgot to mention the KHS Green, but looks like SlimRider already mentioned it. It's the lowest-price "Local Bike Shop" bike that I can find with an upright riding position and a 3-speed Nexus hub.