bought one for £200new off ebay for commuting duties with a view to replacing all the nasty low end groupset for deore. Used it now for 4/5 moinths, added a rack and some brand-X/CRC £15 panniers and its actually become one of my favourite bikes. Its just an honest no frills gets on with it kinda bike. I actually havnt felt the need to ditch the shifters/mechs&cranks yet, i'll replace them when they wear out-they work okay. I've done my grease nipple mod on the hubs and the wheels are still true but overall arnt the best quaility wheels.
Rolls a lot better than a mountain bike on knobblies but not as good as a full on road bike, chromo frame and 45 tyres take the edge off potholes/broken tarmac.
For £200 it cant be beaten, for touring duties however you'd have to budget a mechs, cranks, headset and wheel upgrade and see how it compares.