I 2nd the idea of going to a LBS first. They have a great range of bikes that you can see and feel to get an idea of what your money pays for. When I first got into road cycling, I took many things into consideration. Budget was no. 1 and I gave myself a range that I was willing to spend. I also was around the 1200 mark and found myself a Cannondale Synapse with 105 components. I was stoked. My other considerations were component quality. What reviews did people have on particular road component sets. I wanted a bike that would shift well all the time. But there are some compromises to keep the budget in line. Your bike will be heavier, but if it has a frame that you really like that fits you really well you can always throw on lighter components and wheels later to give that bike that high end snap you'd expect! Have fun riding!