My bike progression:
Cannondale Killer-V 500 no suspension bike in 1995 that I upgraded to a front shock and then over the course of five years or so upgraded every part on it multiple times (due to wear or breakage) till it was all XT and XTR. Loved this bike.
Bought a new Cannondale full suspension (Jackyl, IIRC) in late 2001 and rode it a few weeks. Thought "eh, full suspension is better, but it's only got a small amount of extra grip over my hardtail." Then had knee surgery due to a problem completely unrelated to biking. Out of biking for several years due to the injury and other things.
Decided to get a new bike and start biking again with a group of friends in the Chapel Hill area. They all ride SC bikes thanks to one of the group having a friend that works there, so I got an SC, too. Had Clean Machine build it with the best of the best. I thought I would be amazed at how much better it would be than what I remembered. But it was even better than that! I have been riding it for a year and am STILL amazed at the things that I can do on it that I could have never done before.
It's so good I've just ordered a second one straight from SC as a backup. It's not a best-of-the-best bike, but it's very good. The only thing I'll change is switch to SRAM grip shift. I started out with that and hated it when they went away and had to go trigger back on the Killer-V. But now that it's back, I'm not switching again unless it goes away again. Triggers are the suck.
Anyway, find a Santa Cruz if you can. Awesome bikes. I'm sold on disc brakes over rim, but if you can't find something in your budget now with disc, then try to at least get something with disk attachment points already on it. They still squeal occasionally, but not at EVERY SINGLE DAMNED LITTLE PUDDLE CROSSING like rim brakes do. I don't think they stop any better, really, but they do seem to last very well. Well, since they don't get gunked as easy they do stop a *little* better, but there's nothing like massive friction to clean gunk pretty quick and start braking.
--Donnie