Commuting - Buying a new commuter bike. Is this good enough?

I'm going to be doing around 7 miles each way every day. It innvolves going uphill quite a bit on the way back. I also want to be able to ride a bumpy road without feeling every single bump. So I'm thinking to go fo that one: http://www.fisherbikes.com/bikes/bike_detail.asp?series=dualsport&bike=Utopia
Is it good enough? My budget is around 500quid. Any opinions much appreciated.

Gary Fisher is a nice name... however....
it will be a heavier bike (with the shocks up front)
Heavier translates into slower/harder up hill
despite the bumpy road, I'd look for a steel frame road bike with a long wheel base

Mountain bikes seem more appropriate for.. riding on mountains

This is not a mountain bike. It does look like one, I know, however it's got 700c tyres which would make it a bit more appropriate for my purpose, without excluding the odd trail now and then. That was my though process anyway.

While I don't know that exact bike I went from a hybrid with no suspension to a hybrid with a front suspension. That front shock ate so much energy trying to go uphill. It did feel smoother on the flat with bumps and such though. It really nose dived forward with hard stops.
I figured it made the hills harder so I'd get stronger anyhow and it was my winter bike. I still managed to split the front rim in a pothole though (which I didnt' see on the flooded street).
I now ride a touring road bike with 32mm front and rear tires and I don't really feel the bumps. I can go through chip and seal and I hear it but don't feel it. My wifes bike on 23s shakes her fillings out and on my old schwinn Le Tour with 25ish mm tires it was much the same.

This is not a mountain bike. It does look like one, I know, however it's got 700c tyres which would make it a bit more appropriate for my purpose, without excluding the odd trail now and then. That was my though process anyway.

It's essentially a 29er mountain bike. They advertise it that way. 700c = 29 inch.

"We start with our 29er mountain bike frames and give them a short travel suspension fork and skinnier 700c tires, blah blah...

Interesting concept, though I'd have wanted a rigid fork rather than suspension. I think the bikes would be fine if you did a lot of trail riding. For pavement, it's as good as you'll get from a mountain bike, but it's still pretty much a mountain bike.

I'd say, if you're going to use suspension mostly on the road, get a version that has a lockout feature. It'll be nice to have some plushness for the rough stuff, and with a lockout, you'll be able to make it fully stiff for when you need efficiency.

I would try it out. If the suspension is not too boingy, or, if it is, and you can lock it out, go for it! I commuted ks of miles on Fisher front susp mtn bike, suspension (very short travel) was nothing on my energy budget compared to luggage etc... (and it was also nothing toward my comfort budget, I have to say). But you can't judge if the susp is too boingy until you try it. Maybe you will want to try a fully rigid bike side by side so you have a control to judge the suspension against.

I'd say, if you're going to use suspension mostly on the road, get a version that has a lockout feature. It'll be nice to have some plushness for the rough stuff, and with a lockout, you'll be able to make it fully stiff for when you need efficiency.

Yes I thought about that one. The model with the lockout fork is much more expensive though, actually it's 40% more expensive, so it's definitely out of my budget. I was thinking to upgrade to a lockout fork (and also get rid of those nasty Tektro levers) a few months down the road. Does this sound reasonable?

Yes I thought about that one. The model with the lockout fork is much more expensive though, actually it's 40% more expensive, so it's definitely out of my budget. I was thinking to upgrade to a lockout fork (and also get rid of those nasty Tektro levers) a few months down the road. Does this sound reasonable?

Sure; I'd also just try the non-lockout, like what HardyWeinberg said. If the only difference between the lockout and non-lockout bikes is the fork, and all the other components are the same (or at least close enough), it might actually be cheaper to get the bike that already has the lockout.

I was thinking to upgrade to a lockout fork (and also get rid of those nasty Tektro levers) a few months down the road. Does this sound reasonable?

consider the POTENTIAL upgrades that you are considering, and how much they would cost.
If you are buying a bike and then have to or will dump XXX dollars into it... just make sure you are getting a money pit. Altho it is SO easy to dress up new bikes (I've done it!)

I'm with the consensus: if you plan to do trail riding and commuting, this could be nice. But if it is mostly for commuting, I'd look for a hard fork.

It's funny... a few years back, I was doing IT support (got burned out, done with that). A kid in the dept shopped around for a new Mountain bike. He got a nice TREK w/disc brakes and all. And he also got a 300 dollar bike rack for his shiny black Ford pickup truck, and he'd go trail riding every 2-3 weeks. he lived about 10-15 minutes from work, easy path ride, but he NEVER rode that bike to work. always drove. I didnt get it.