New Bike, what and how much should i spent?

Caporegime
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Thinking about getting a bike, get some exercise and a mean of travel for the summer. I know i shouldn't get a bike from Halfords but realistically how much do i need to spent without breaking the bank and killing myself?

I've been looking at this site for last year's models as they seem to be best value for money.

http://www.evanscycles.com/dept.jsp?dept_id=1001&subdept_id=1204

Basically i want a bike that handles well on roads, and the odd time when its on some dirt. It won't be jumping off rocks and into the forrest for fancy tricks and stuff. What do i need? Budget is £250 max really (is it enough?). And do i need disc breaks? and what about those funky suspensions? and how do i know what size frames i need? I am not particularly tall, 5'8.
 
Mulder said:
For that price you will not find a better bike, period. I've worked in a bike shop for 3 years and nothing comes close.

meh, they don't have a 17" frame !

What else do you suggest, you seem to know :) £400 is a bit much really but if its really worth it over a £300 one then i would go for it. I mean i spent £550 on glasses last month !

how about these Giant bikes ?

http://www.paulscycles.co.uk/products.php?plid=m1b4s2p0

I think this Terrago FS1 seems a good value, i don't know how it compare to the other giant thou. I don't even know what the spec mean !

http://www.paulscycles.co.uk/products.php?plid=m1b4s2p35
 
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