A serious budget means you need to look for some options. Many road bikes do not have clearance for fenders. And unless you commute in Death Valley or areas that have similar rainfall amounts fenders are a must.

Buy used. But take the time to learn what to look for in terms of mechancal condition before you go shopping.

• Look at the sidewalls where the brake pads rub for bad amounts of cupping. That's wear from braking and rims need to be replaced when the cup along the braking surface gets to be much over about 1 mm/1/32 inch or you risk the rim failing and flatting the tire in an explosive manner.
• Check the chain and sprockets for wear by pulling on the chain at the front of the front sprocket. IF it can pull away by more than about 1/8 inch the chain and sprockets are close to requiring replacement.
• Hold the frame and push the tires side to side to feel for any play or clicking that means the bearings are loose and in need of servicing. The lift the frame and spin the wheel at a very slow speed and listen for any nasty grinding or crunchy sounds. Again either means the hubs require servicing. It can also mean that the cups and cones are pitted and worn which in some cases can mean that the wheel is beyond saving. But you can only tell for sure if you take it apart and know what to look for.
• Pull and push the pedal crank side to side to feel for any clicking or play. If there is some it means the bottom bracket needs replacement.
• Look at the cables at each end for signs of fraying. ANY broken strands means you need new cables. On older bikes replacing all the cables and the housings is often cheap insurance.

I would not limit myself to just road bikes. Mountain bikes are a lot more common these days and I think you can find nice ones for quite cheap. Again, you'll want to do some homework to sort of get an idea of what is good and what is made from old electrical conduit. A mountain bike set up with some of the road slick tires that are common these days can make for a very nice commuter bike. Two of mine are this sort of deal and a previous bike I had that I sold also used 1.25 inch road tires and was a superb commuter. And of course any mountain bike running with smooth street tires will have LOTS of room for fenders. And a lot of them came with eyelets to allow mounting racks.

Another option if you have it is to borrow a bike from a friend or family member. A lot of people have unused bikes lying around gathering dust. This way you can try out something, figure out what you like, dislike, and need all for the cost of a tuneup.

For 10 miles - it doesn't matter much what you ride as long as it is comfortable for you.

Sure thing. I am in Sacramento.. If anyone feels like finding me a good deal I wouldn't object. I found this guy selling 4 bikes... I'm going to be 58c, are any of these good deals? I was thinking about offering less...

http://sacramento.craigslist.org/bik/607010276.html

one more thing: i totally agree that you should consider getting a crappy or older bike first, and then save up or whatever until you know what you want. it could save tears in the long run. you can also spend that time learning about bikes. i wonder how many people buy a nice bike and then end up buying a different nice bike 6 months later? sometimes the idea of something (a cruiser, maybe) doesn't meet up with reality (the 4 near-vertical hills on your commute).

another good thing about bike shops is that you can go and try out lots of different kinds of bikes, in the right size, without spending any money. of course you don't want to waste their time, but if you plan to buy a bike from them, then they're a good resource.

How about this? This MTB is already set up for commuting, looks great:

http://sacramento.craigslist.org/bik/608594094.html

Another MTB that could be converted to commuting:
http://sacramento.craigslist.org/bik/608266918.html

Here's a LeMond; I don't know if it would take fenders..
http://sacramento.craigslist.org/bik/607417750.html

That's just going back a couple of days...you have a pretty lively market in Sacramento; you ought to be able to find something.

I purchased a Dawes lightning sport off of ebay from "chicabike". It cost about 240.00. It was a brand new bike with 14 speeds and a chro-molly frame (steel) that I have put over 1000 miles on with only one problem... I am heavy (trying to get lighter) and at about 800 miles, I noticed that the axle was starting to bend (happens with free-wheels as I understand...). I decided to buy a tiagra wheel that accepts a cassette and have been happy with that...

CRaigslist, pawn shops, garage sales ETCETC..

My buddy bought a 10 speed for 60 dollars and rode it for years before it fell apart. If getting you there is all that matters then just buy something that will roll and stop. Just make sure it fits you... so that you are comfortable when you ride.

He almost never spent money on it... just bought an other used one for 40$ after that one died. So it was 100bucks over the last 6 years I figure he's spent... maybe a couple tires , tubes, maybe some brake pads. If budget is the primary factor, all manner of income/spendable can be accommodated.

I have a $300 Giant Cypress hybrid. It's been a great bike and at 13000 miles in 4 years I have no desire to replace it.
The only maintenance I've done is:
The rear wheel broke a lot of spokes; I ride 8 miles a day of really bad washboarded/potholed gravel. I don't think this would be a problem for most people but I had to build a new rear. This cost me about $50.

New chain every 1800 miles ($5 at Nashbar). New brake pads whenever.
If you replace the chain in time, the cheapest cassette/freewheel will last a long time. Mine came with a cheap freewheel, and I have had to replace it twice when I let the chain go far too long before replacing, but new freewheels are $12 and take 5 minutes to put on.

By the time I finished equipping the bike I probably had $450 in it, with racks and lights and stuff, but you can live without that stuff if you ride in the daytime and use a backpack.

The singlespeed advice may or may not be relevant. I'd hate to do my commute on a single speed; it goes between long stretches of over a mile of dead flat smooth pavement to 15% grades up bumpy gravel where you can not maintain any momentum. But if you're in relatively flat and all paved areas, it might work for you. Just saying that the "geared bikes cost a lot to maintain" argument is hogwash. My geared bike has cost me a grand total of $50 in chains and freewheels in 4 years, and $30 of that was in freewheels that died because I didn't change the chain in time.