it's a good time of year to buy. the '07s are out (or coming out soon for some brands). in my search, i found that most lbs have '06 left-overs that they are trying to unload. one shop had the bike i wanted for $387 (msrp for the '07s is $470). that shop didn't have the color i wanted so i called another shop and they were selling the one i wanted for $429. i told them about the sale at the lbs closer to my home and they readily matched the price.
so...another couple tidbits of advice;
once you narrow down your search to a few models, go to the mfrs' websites and find all the dealers in your area. find out if they have in stock what you're looking for. find out what the price is. i was surprised at the wide range of prices between dealers. that will give you an idea on what you can get the bike for.
also, the cost of the bike isn't all to consider. i upgraded my saddle and will upgrade my pedals. the dealer where i bought my bike readily swapped the stock saddle evenly for saddles under $40. for more expensive saddles, they gave a significant credit. another dealer i went to offered me a $10 credit for the saddle and $5 credit for the pedals.
customer service is more important to me than $. right or wrong, i got a better feeling about the dealers who were more flexible with me. another way i was judging dealers was by looking at the floor models. at the dealer that i really didn't like...every bike i tried, i had to tighten the saddle post. i saw that at a few dealers. i also ran across some crooked/loose stems and poor brake adjustments. if they just slap floor models together, it makes me wonder how much attention to detail they pay to setup, etc. of customers' bikes.
i realize that many customers' hands are on the floor models. i considered that before i was too critical about the state of the floor models.
getting back to what style you should buy...i'd say don't rule out hybrids. don't rule out much of anything until you try them. almost no matter what you buy, if you get more serious about cycling, your first purchase most likely isn't going to fit all of your needs down the road. if your commute involves pot holes and lots of curbs, durability is a MAJOR concern. smaller-diameter, wider and more durable wheelsets/tires might be what you need to look at.
happy hunting