Originally Posted by derath
It really depends. I have been in your situation, but my budget has somehow jumped up to about $2000. :-)
One thing to consider as well. It is cheaper to buy the right bike once that you will be happy with, then to buy a lesser "entry" bike and then feel the need to upgrade in a couple years.
My brother-in-law got into cycling a year and a half ago. He started with an $800 bike. Less than 6 months later he buys a $1500 bike and sells his old one on Ebay. Then 2 months ago he gets the itch to upgrade again. Now he's riding a $3k bike! So buy what feels good even if you have to stretch your budget a little. The Giant frame is a decent frame worth upgrading the components later, start with the wheels. Good luck.