This may well raise some eyebrows but when I lost my job I was virtually skint, I brought a brand new Viking road bike for £200 and it was crap, however I liked how it looked and it was mine and it was brand new, I ended up putting a full 10 speed 105 groupset along with some pro-lite rims on too and the result was astounding, ok so it cost a total of £600 but I didn't have that initial outlay and built it bit by bit as funds allowed. I then got back in to work and found myself in the position to buy a new Bianchi, my dream bike which cost me £990 but the ironic thing was although there was 2kg difference in the bikes they both rode equally as well as each other.
I cant understand the problem with spending out on quality parts on a budget bike... worked for me.