Yes it is a step up from an X-Mart bike. Because of the stem you will have a very limited choice of upgrades for the fork. You probalby could almost forget about upgrading the fork on that with the headset. You CAN upgrade other parts. Still, like i said, i know you would love to get out riding now. But if you could somehow save up another $100 for it it will be much worth it.
Marin seem to make a few good bikes aswell.