There are always one or two at the LBS who will do this. Then there are the 4-5 guys who will go out of their way for you. I nearly stopped patronizing my chosen LBS because of one or two guys - glad I stuck in there because the rest of them are all decent chaps. Give the LBS another chance and maneuver yourself to a different staffer.
For a simple first bike I can continue to recommend my '07 Raleigh Rush Hour. Light, affordable, SS/FX - your choice. And the steel frame. People on these boards also seem to like the Konas. Neither of these two options will set you back more than $700 and as in the older year model example, you should get a price reduction.