I've been very happy with my Novara Randonee, a touring bike that I use for every day commuting.
Two things about buying REI bikes:
1) Wait for a sale. They always have them, and they offer significant discounts (10, 15, even 25%). Even better, watch for a sale announcem,ent and then shop the week before the sale when selection is better. Then go back during the sale for a price match; you'll get a refund of the difference between the regular price and the sale price.
2) REI bike departments seem to vary in their quality. The one near me -- Conshohocken PA -- is very good; good enough that a lot of cyclists in the area consider it their LBS. But if your REI has a substandard bike department, you may not get the excellent fitting, Barnett-trained service, and master wheelbuilding that the Conshohocken store offers.
REI covers their frames for life, or did when I bought mine. They're decent Taiwanese frames, undoubtedly made by the same workers in the same plants that make name-brand frames you're probably more familiar with.
As always, there's no substitute for a good test ride. If you REI is like mine, that won't be a problem either. I was given the bike to test ride with no restrictions. It's one reason I ended up buying it.
RichC