Also, though many would disagree, if you want a bike to "fix up" a French bike may not be the way to go. These tend to have many "non-standard" parts, sizes, threads, etc. which could make them more difficult to maintain.

In your price range you don't have much of a choice other than what you're doing. Of course randyjawa's suggestions are great, but searching craigslist daily and hoping to find a decent bike that fits is probably how you'll finally find your bike. Downtube shifters I would say are the main thing to look for - they aren't typically standard on shoddy bikes. With the small size needed (trust me, I know how you feel) it makes it a bit more difficult. Be patient and eventually you'll find a bike you'll love.

Where in Upstate are you? That's my neck of the woods as well and maybe I can help point you in the right direction. I'm on Craigslist daily checking all of WNY for bikes that meet your criteria, but since I already have a couple I'm a bit more choosey.