Thanks for the tip. I'm not sure how far I'll get considering I know very little, but I'm sure I can get at least some of it done. My LBS said they'd charge around $40 for a single speed. I'm a bit torn between doing this and just buying a cheap ($200) used bike from a shop. The strange thing is that the used shops in my area all sell bikes that are 20+ years old. Not that that's a bad thing, but it seems like I can't find a used bike that's, say, 5 years old.

I know this veers out of the mechanics category, but for a sub $300 bike, for light commuting, city rides (again, low mileage) and something half-way decent, what would you recommend? Keep in mind, I need a small frame and don't want anything too heavy.