highlander probably wouldn't be bad.

but with the money...i say grin and bear it for now (i typed "gin and bear" it at first, and if that's your preferred route....), but put away a bit, and if you want more of a road type frame, or whatever...check out thrift stores, pawn shops, garage sales, etc. get a new frame, transfer wheels (if yours are nicer) and any components nicer than what's on the new bike, and call it done.

as far as compatibility, i wouldn't worry much, however...get a new bike that doesn't have that bad of parts, so if you can't transfer parts (or even if it has nicer parts in the first place) you don't have to worry.