I commute on a Soho S. In fact I've ridden it almost seven days a week for about a year now. It's in your price range and it can easily take fenders and a rack. Doesn't take large tires. I like the fact that it's aluminum. The weather is pretty crappy where I live. I don't have to worry about rust after riding in the rain/sleet/snow. It gets no love here because it's not steel and has a sloping top tube. Check out the review and million comments on Bike Commuters
http://www.bikecommuters.com/2008/02...ewtrek-soho-s/. General consensus is (and I agree) decent frame with crappy components that you will have to upgrade.