I agree with Fuzz
Buy a hybrid ( or "cross-bike" as Fuzz calls it ) mountain bike, they have smooth tread pattern in the middle for pavement riding, and a little bit of "knobbies" on the sides for light duty trail riding. They are also configured better for street riding than a pure mountain bike.
I bought a Kuwahara FastLane 150 hybrid mountain bike 2 years ago on sale for $300 locally here in Kitchener and it rocks, very smooth shifting and has front suspension ( limited travel but helps soak up the bumps ). It also has a mini-shock in the seat post to help absorb shocks, so it is very comfortable. They don't make or sell them around here anymore afaik, but I was happy with it for the price I paid. I am a very casual rider so it is more than sufficient for my needs.
Kuwahara is a Japanese brand , and did you know that the BMX bike that E.T. rode in the moon scene is a Kuwahara!!?? It's true:http://www.cycleexif.com/kuwahara
Here is a pic of my bike to give you an idea of what a hybrid mountain bike looks like:http://www.funtimeshobbyandcycle.com/ht ... _mens.html
Since you can't buy that one anymore, just check out your local cycle shops for deals, or as Fuzz recommended, buy a used one in very good shape and save 5x the retail price!! Make sure you take it on a good test ride first before buying it though!! Happy shopping!
Here is a nice used Specialized Hybrid for sale in GTA, offer him $300! http://toronto.kijiji.ca/c-buy-and-sell ... Z293062015
Here is a nice Trek hybrid with fenders ( good in the rain ), offer $300 :http://toronto.kijiji.ca/c-buy-and-sell ... 290464639#