The 3 most important things when buying a bike are fit, fit and fit. In the words of Jackie Childs, if it does not fit, you must not sit. The best way to get fit is to go to a local bike shop (LBS in bike parlance). Many shops will discount the cost of the fit off the price of the bike.
The advantage is a bike that will fit, that you will not get hurt on, and therefor will ride more. You also get your first tuneup for free. The downside is you might spend $700 (or more...eek!). That having been said, some LBS have spring sales and used swap-meets where you can buy a used bike that will fit you.
Hope this helps, and as always, YMMV.
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