A little update. I'm still looking for a steel frame and am still trying to sell my Trek 3700. My mom told me she has an old (1990's) shimano 105 groupset lying around that I can use for the new bike.
I have a couple people who want my trek, but I wanted to make sure I have the parts lined up for my new bike first before I sell the trek because I commute everyday.
So with the 105's that I'm getting and the potential $275 for the Trek I need a frame, fork, wheels, tires, handlebars, stem, saddle that will hopefully not exceed the price of what I get for the Trek.
Right now I am leaning towards a cyclocross type frame. I saw nashbar has the Nashbar X Cyclocross frame and I can get a surly CC fork for it, but the frame is aluminum and it would leave me with $150 for the rest of the things I need.