I think I was in a similar situation such as you. I ended up buying a schwiin super sport comfort 2006 model a couple of months ago. I paid $299 at performance (closeout sale). It has road bike tires and a flat bar like a mountain bike. I installed bar ends to move my hands around when I go on long rides. The components aren't top of the line, but I'll upgrade them when the time comes. I will use this as a commuter and for quick runs to the grocery store.

You can still find it at the schwinn site.

Performance was able to get a model that was my size from another branch. They didn't charge me shipping either.

Another model you can look at is the fuji absolute (lowest model 1.0?) Similar to the schwinn.