Good beginner bike? Looking at either Trek 7.2 or something in the $300 range.
 

My girlfriend and I are both looking to buy some bikes I am looking to buy a decent bike for riding around recreational purposes. We probably won't be riding every day, but more likely a few times a week for an hour or two. Almost all of the riding will be done on a paved surface or bike path. We were looking into the Trek 7.2, but at $550 each, plus tax, helmets, locks, accessories, it gets us up to almost $1400 which is a lot. I don't mind spending that much, but I wanted to also know if there were any decent bike options in the ~$300 range. None of our local bike shops had bikes cheaper than that ~$500 or so Trek 7.2 range, but I don't know if there are any decent cheaper ones that you could get at a sports authority type store instead. I've also tried to find used 7.2's for sale but have not had any luck locally. Any suggestions?

Will you be cycling up any hills or inclines?

Yea.. I'd definitely want a 21/24 speed instead of a single speed.

Alright then, checkout the REI outlet website:
www.rei.com/outlet/category/22000029

I like these at < $500:

*Schwinn City IG3
Diamondback Insight
Marin Hamilton
Marin Pioneer Trail
Marin Bridgeway

Giant Escape 3 is below $500, I think. Also, Scott makes some interesting bikes. I rode one of their hybrids at R.E.I. and liked it. It was either the Sportster or the Speedster.
Good luck!