Lots of people commute in the summer here - we have the second highest per capita of bike commuters in Canada (after Victoria). There are a smaller group of hard-core cyclists who bomb through winter as well, but it's no picnic some days. -40 is not uncommon, and same with wind and tons of snow. Gets pretty messy in spring and fall though.

It's possible to go car-free if you live near a transit route, i.e. centrally; some of the suburbs can be a problem. There are some bike lanes and sharrows downtown and a decent path system along the river. With the recent rise in people moving here and concomitant rise in traffic, it's pretty much the same travel time on a bike as in a car if you need to get downtown or to the university.

I got a great deal on an '08 Rocky Mountain from Bruce's this summer - the guys there were pretty pleasant and helpful, although not so much when I returned the rear rack a week later (didn't fit my panniers, oops.) They have a decent selection of clothing and a student discount.

Bike Doctor is probably the one you are thinking of - it's just a half-block east off Broadway. I think they've got the most selection in town, plus some nice high end stuff (Cervelo etc.) They mostly sell Trek and Giant, which I am not really a fan of - I find them to be somewhat overpriced for what you get, compared to say, Opus, Jamis, or Rocky Mountain. They do have some Redlines and I saw a LHT in there once.