I have ridden Walmart bikes off and on over the years and have never really noticed a problem with them....the furthest ridden was probably 10-15 miles at a time with some good sized hills. The guy that has been assembling the bikes at the local Walmart for the last couple months is a retired engineer. The only thing I noticed about one of the newest bikes they rolled out was the handlebars were turned down a little bit, but everything else seems solid.
I did see a 20-inch bike there last year that was so tight that the bike wheel wouldn't even turn. I have two bikes that came from walmart right now that came from a couple guys I know and accept for needing a new tube and minor adjustments, they ride fine. Although somewhere down the line they will probably chopped up and used to build a freakbike...they come in handy as winter riders.
Shaggy