As I was reading through your post it struck me that you are probably training for the Pacific Coast Triathlon in Crystal Cove and that the bike shop you're going to is Laguna Cyclery on Thalia...is that correct?
For starters, it's totally lame of them to suggest a hybrid to you if you are planning to get into tri's and I think it's a horrible choice for that course as it's pretty challenging for a sprint. I'm not at all a fan of that shop as they have done some VERY bad things with my friends' bikes (like swapped out parts and put them on other people's bikes!!!!).
You can do much better in your price range. If I hit the nail on the head and you are interested in more, post here or send me a PM.
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Fredo, you're my older brother and I love you...but don't ever take sides, with anyone, against the family again...ever.