A Rock Lobster 853 steel frame for £299 from Merlin. Then I would build the rest of the bike onto it from deals found on Ebay, and other internet bargainy goodness, such as these hubs.
Why?
1. I like steel bikes
2. I like having something different than the average Trekalized/Boardcube
3. I like building bikes
Something from On-One. Could get a carbon frame for that money but I'd go for a 29er.
I already have an SL Pro road bike (ok thats really Planet X but, meh), Pompino as a commuter (steel frame - with Hebdenbiker on that). Makes me a bit of a fan I suppose, but never had a problem with them at all and both the bikes are really nice to ride.
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