Helps a lot. After blowing a tire at 40 going downhill because of rim brakes, disc brakes were a requirement for me. Also we have a lot of afternoon thundershowers in fall, so I needed disc brakes. Good disc brakes, ie Avid, add about $200 to $225 to the cost of a bike.

We bought 2 totally different bikes for about a grand apiece. The big surprise is we spend about another grand on biking gear and accessories. Mostly bike racks and carriers upped the price, but we needed that for transport to fun ride locations. We justify it as good value as decreasing auto commute expense and avoiding paying rec center/gym fees.

We started looking at the department store models for about $200 to $300, and then looked at Specialized, Cannondale, Jamis and Giant. The key here is you need a good LBS that will provide service and can fit the bike to you. I don't think my bike, an OCR Touring by Giant is available to you downunder. Because I required disc brakes, I was locked into Cannondale/Jamis/Giant. Giant gave the best value for the dollar, but it meant ordering the bike. Other bikers went to ride my bike after I started commuting and agree it is a very nice bike. Giant makes many non disc brake models in the OCR lines. The LBS was able to adjust the fit of the OCR so it rides like a hybrid but uses road tires. Since I didn't have hugh hills on my commute, I swapped for free the stock 11-31 cassette, rear gear assembly, for a 12-23. The result is gear changes are very very smooth. It feels great to do a slight switch up or down gears. I would recommend you first decide on the bike and then ask the forum for advice on rear cassette. I would think the 12-26 would be ideal for you, but first pick a bike and then see what it's stock gearing is.

Now is the time to buy a bike before the prices go up next year. We are in the 2004 or 2004/5 model year. I have heard the 2005's will be at least 10% higher.

Since you want to keep this bike for a long time, I would try to find one in the $600-$850 range. Don't get too caught up in the steel vs alum controversy, or the top of the line components. You just need a bike that does not have bottom of the line components. Anything midrange should work. Go to several LBS's. We had to try out 3 before we found a shop we trusted. Then go ride for at least 5 minutes at least 4 different bikes. After that the choices should be clear. I would also recommend 2 test ride sessions. The first test ride session to narrow down to 2 or 3 bikes. Do not buy that day. Come back a second day and decide between the 2 bikes which to get. You'll be surprised the difference between the wonder of the first day ride and the second ride on the same bike. But you'll also be much more confident in your purchase.

Have fun, and let us all know what you get. I haven't exercised in decades and biking is quickly bringing muscles and endurance back. Welcome to an enjoyable way to get exercise.