If you're set on drop bars, I'm thinking a cyclocross bike of some sort. But, as others have said, drop bar bikes aren't cheap. That is where bikes direct comes in. I've never purchased from them, but many have, with varied experience it seems. They have a pretty decent looking cross bike for around your price range.
This thread reminds me of what a fool I was to ever sell my Kona Jake The Snake. The 2010 model lists at about $1400 now. I paid, I think, $850 shipped for my 2005 model, very slightly used. In brand new condition. Sold it to a college student who had it for about a year or so, then locked it to a wooden porch and got it stolen. Don't get your bike stolen.
Honestly, I'd probably take your friend up on his offer, if that gets you the bike you want.