My situation too, not knowing anything about today's cycling world it was quite a shock to see the price gap between Walmart bikes and (real bikes). I've had Walmart bikes in the past so I knew thats not what I wanted, I want this bike to last longer than one year lol.
Here's the thread I started asking pretty much the same thing you are, maybe you can find some help and direction from there. My price range was the same as yours, I was pointed to a few bikes in that price range and decided on a Diamondback Insight 1, I have the bike ordered, haven't received it yet so no review but I feel pretty good about it after reading a lot about the bike. Good luck hope this helps
http://www.bikeforums.net/general-cy...21-hybrid.html