Help! I need to defeat a cybersquatter!

[RachaelBachael]

Hey All,
I'm freshly out of college and since the economy sucks I've decided to work for myself and start a business. I have come up with a cute name, slogan, have all of my information, services, and pricing in order, and am ready to get to business.

However, I ran into a slight snag this morning. I would like to buy a website to promote my business. I looked at godaddy and the .com was taken, but the .biz,.info, .net, etcs were available. I bought 3 of the available sites thinking I could forward them to the .com if I can get the site. I checked out the .com and it was a basic squatter site. It had a few ads and then linked to other pages. I looked up the domain name on the site Wohis and found out my desired .com was owned by a man in Texas, his "hold" on the site expires in December, and he paid $20 for the site, which is hosted on GoDaddy.com. I also found his e-mail address.

I e-mailed the guy and he responded immediately saying he had "multiple offers" to buy the domain name and I should give him my best bid. I know that is bullshit so I told him I'd give him $100. He responded saying he wanted over $5,000. I am not able to nor willing to pay that.

Does anyone know a way to get the website without me having to sell my soul to this guy? Is there a loophole to get around or anything I may not have thought of?

Any help or ideas would be greatly appreciated!