I think you'll find the bike very heavy
This is a difficult price range really. With the price of bikes and components soaring through the roof its difficult to get more that the the most basic of frames and the cheapest of components .I think you will be disapointed with this bike after a few weeks /months
My advice would be to go for a road bike with straight bars and road wheels and tyres. 90 % of your riding is going to be on asphalt not canal paths. Any road bike is quite capable of a few miles on canal paths unless they are very rough or muddy.
You are going to get a much better quality used bike than new at this price. I would look for a used bike from a lbs you should be able to get a £500 bike for £250
Just found a better link that gives a full spec.
http://www.bikepedia.com/QuickBike/BikeSpecs.aspx?Year=2008&Brand=Trek&Model=7.2+FX&Type=bike
This bike isn't suited to road use. It is predominantly an off road bike with huge 35c tyres It is intended for off road use with occasional road riding. You want the reverse .