thanks for the input everyone. we went to a local bike shop (A-1 in Manassas) where I bought my Specialized a few years ago, the selection kind of sucked and the guy who helped us seemed like he didn't really know what to suggest. We ended up going to REI and were helped by two outstanding sales people. We ended up getting the Novara Portal, a bit pricier than I had planned on spending, but he should be able to keep it for 3-4 years as he's just barely tall enough for it now (it's a small).
Thanks again!