Buy a Savage, Marlin, or Stevens bolt action .22 and a box of bulk .22lr for probably less than $300 altogether. Then at the same time you could pick up something like this http://www.gunbroker.com/Auction/Vie...Item=325867026
(Finnish Mosin $335) and a bunch of surplus 7.62x54r for not too much more. That way you could have something to practice the fundamentals with and then move up to the big guy once you've got it down. All totaled I believe you've got all your bases covered and can still come in under your $700 budget. Sounds good no?
Sgt. of Marines, 5th Award Expert Rifle, 237/250
1st Award Expert Pistol, 382/400
D Co, 4th CEB, Engineers UP!! OEF 21JUN-20SEP2011