Well it worked for me at least! I've been riding an ok bike all year and recently bought a used trek 6500 in good condition. Of course you don't want to get a bike that is going to fall apart on your first ride, but I think it's stupid to spend more than a thousand dollars on a bike that you may ride for less than a few months.
My best advice for finding a great starter is to GET FITTED! Alot of people have never experienced a good fitting bike. Alot of discomfort can come from a bad fit. Next I would try to stick with aluminum, it's cheap and light. Thirdly stick with name brand components. The rest is in the rider.
I'll Second getting to a shop and riding some bikes. And find out from People who know those trails. I'm personally riding a Giant Talon 29er but out the door, with bits and pieces, it ran $1K. My only regret is not buying more bike. I feel like I cheeped out with the hard-tail.
Still Craigslist is an option. Your likely to get a lot of bike for the money, caveat emptor and all that.
I feel like I cheeped out with the hard-tail. 
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