First, I want to list some online stores where you can order parts: niagaracycle, cambriabike, eBikestop, nashbar, icycles, velo orange, bikeparts, bikeman, wheelworld, harriscyclery, jensonusa, universal cycles, eBay, amazon, chainreactioncycles (uk), saint john cycles (uk), bike24 (Germany), bikexperts (Germany), cyclepath.ca (Canada), smartbikeparts, cheapbikeparts360, bikepartsplace, price point, blueskycycling, performance bike, bikeisland, benscycle, starbike, aebike, airbomb
http://harriscyclery.net/page.cfm?PageID=49
http://www.bikeforums.net/showthread...s-on-groupsets
ribble, shinybikes, probikekit (maybe that's pbk), velomine (e-mail for better price), merlincycles.co.uk
loosescrews, xxcycle
http://www.rosebikes.co.uk/ http://www.rose-vpc.fr/
I agree with the idea of building a bicycle actually partly because if you find some things on sale, you can save a lot of money. I've done more research on touring bicycles but I'll try to give you an idea where your cost can be higher: the frame, crankset, wheels and in the case of mountain bikes, the suspension forks. As far as frames go, the ones I saw that were less expensive were: Leader 516H, Sette Reken and Nashbar mountain bike frame (also the same as the performancebike frame). From the research I did, I believe these frames may all take 100mm suspension forks. (I just ordered a WD Cycle Elite frame today on eBay but that's for a future project that may stay in boxes for the next 9 months lol. Information on this frame was very bleak but I saw pics of it with "recreational geometry" written on it and a suspension fork. Since I wanted an upright riding position and use a suspension fork, I ordered it.) For the crankset, you may not be able to afford a Deore crankset at the price budget you have (although some are sometimes on sale at jensonusa), but you may want to choose an Shimano Alivio or Sugino Impel 150 crankset. (If you choose a square taper crankset, Shimano BB-UN55 have metal cups on both sides.) As far as wheels go, some people have said here that the spokes on machine-built wheels break. But, if you choose a pair of Rhynolite wheels with Shimano Deore hubs for $100, you could always buy new spokes and have the wheels re-built if the spokes start to break. In this case, buying a built pair is not as expensive as buying all the parts individually (unless you find sales and built them yourself). You can save money by buying Falcon friction shifters but some people may not want more than 8 speeds with friction shifting. Places like icycles (site is currently "on vacation" during the holidays) have Shimano Deore LX shifters on sale for cheap. You can always find Shimano Deore shifters and derailleurs on sale. I'd prefer Shimano Deore V-brakes and levers although Shimano Acera brakes and levers still work (I bought Jagwire brake pads because of the comments I read on Shimano brake pads).
Suspension forks is still an area I'm researching. From the comments I've seen so far, some people insist on minimum $175 suspension forks. The bottom-level ones may be ones you'd want to use as temporary until you have more money (the $50 ones).
Again, from the comments I've read, you may want the bottom bracket and crankset installed by a bike shop.
I know I didn't mention disc brakes but after seeing a picture of someone's finger when he tried to work on his, I prefer V-brakes. But, there you have it. If you build a bike on your own, you can choose what you want on it. If you wanted Friction shifters and save a lot of money there and spend $250 on a suspension fork, you can put more or less money exactly where you want it.
If you choose a frame and wheels that take both disc or V-brakes, you could choose inexpensive Shimano Acera brakes and levers and change them later with disc brakes if you want.
Shimano parts hierarchy:
Tourney
Altus
Acera
Alivio
Deore
Deore LX (trekking in Europe)
Deore SLX
Deore XT
Deore XTR
I think XTR is really for racers. And some people would want minimum Deore while others would accept Acera as a minimum. To me, Deore LX shifters and derailleurs on sale is where it's at (although I'd prefer regular Deore for V-brakes and levers).
If you click on "buying guide" in this link, you'll see a whole list of sizes for different heights:
http://www.chainreactioncycles.com/M...=75508#mtbsize
List of parts needed to build a bike:
frame:
fork:
handlebars:
stem:
grips:
headset:
headset spacers:
seatpost:
seatpost clamp:
saddle:
crankset:
bottom bracket:
front derailleur:
rear derailleur:
brake levers:
brakes:
shifters:
cassette:
chain:
pedals:
rims strips:
wheels:
tires:
tubes:
wheel reflectors:
spoke protector: