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I'm a beginning rider, and I got a Trek 3500 for about $200. It's about the best bike you'll get for the money, and it's easily upgradable. I decided that it wasn't worth spending $400+ on a bike until I saw how often I used it, what kind of biking I tended to do (street vs. off-road), what kind of features might be good for me, etc. I love biking - it makes me feel healthy. And I'm going to start using it instead of my car for small trips where it makes sense.
If the bike is going to be your primary mode of transportation, splurge on one with the features that are going to make you happy, comfortable, and safe. If you're just using it for recreation or casual exercise, go with something cheaper until you decide whether you want to invest in something for a more focused purpose.
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"If ten million people believe a foolish thing, it is still a foolish thing."
- Anatole France
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