There are many good deals out there if you don't mind putting the time in to look. My neighbor is an avid garage sale hunter. He's always coming home with good expensive stuff for little money. Last year he came home with a Ultegra equipped Litespeed for $750. It was in fairly good condition and needed only some new cables and minor adjustments. Unfortunately the bike was too large for him --it was a 59cm, he should have a 51. But I think he sold it on e-bay for a $1000.

This, however, is a rare find. A good steel bike is the more common find. If you have some knowledge of brands etc. you're more apt to discover the wheat among the chaffe.

Finding one that FITS you is the hard part, but it can be done.