If you're your ride is mostly on the city streets and paved paths you don't need the Norco. The suspension forks only add weight and are of no use to you. They're not very good either. Also, you don't need 38c wide tire too.

Some very good bikes in your price range are: Giant Escape 2, Trek FX2, Sirrus Alloy-V-Brake, Cannondale Quick 7. There's no much difference between them. It all depends on which you find more comfortable.

Personally, I'd go with the Quick 7.