Should I buy a new bike or upgrade parts?

[pk_infuriato]

I currently have a Apollo Panther that I got a few of years ago for a birthday. http://www.apollobikes.com/bikes12/mtb/panther
Which i rode quite consistantly until I shattered my elbow at Eagle MTB Park keeping me off the bike for 24 months.
I have recently got back into riding and currently I ride almost everywhere I need to go often 15 km trips and have begun to realize the constraints of my bike.
I ride mainly road but I feel safer on a MTB as I ride in the wet often and also ride on dirt roads.
I ride quite often with a friend of mine who has a Specialized S-Works Epic 2007 which is obviously incomparable to my bike.
Understandably whoever is riding the Epic seems to be able to ride a lot faster then the one on the Apollo (on road), whether it is uphill or downhill.

My question is, how can I keep up with the Epic, will I have to buy a new bike or could i just upgrade a certain part (gears? wheels?) which will allow me to
at least partly keep up with the Specialized. I have a VERY limited budget sub $500 could stretch to $1000 if I wait until Christmas.
I am happy to buy used. (Thought about a Specialized Hard tail used, but this isn't much of an upgrade)
So what would you recommend?

Thanks

[mitzikatzi]

For road use. "Slick" tyres 1.25 or 1.5 wide. Better lighter tyres are an improvement. Service your wheel hubs. New grease and adjust the cones.

It is always more "bang for your dollar" when you buy a new bike on sale than a heap of parts.

[bychosis]

Looks like an entry level bike, you are probably better off saving and starting with a new bike with better specs than upgrading your current ride too much. To drop some rotating weight you could try getting some lighter tyres with a lower rolling resistance, and then running them with ghetto tubeless or lightweight tubes (but more chance of punctures)

Other than that as above a good grease, service, adjust may help. Repack the hubs and ensure they are adjusted right, clean and lube the drivetrain, make sure your brakes aren't rubbing etc.

[clackers]

My question is, how can I keep up with the Epic

+1 on the tyres, PK, but all things being equal you couldn't expect these two to stay together all the time.

They were designed for different purposes.

The wheels are smaller on the MTB, it's heavier when climbing, and the aero position is worse along the flats and descents.

You'll just have to up your effort a bit, buy an additional bike (the N+1 phenomenon) or get revenge on your mate by taking him down some really gnarly singletrack.

[uglybob]

My question is, how can I keep up with the Epic

+1 on the tyres, PK, but all things being equal you couldn't expect these two to stay together all the time.

They were designed for different purposes.

The wheels are smaller on the MTB, it's heavier when climbing, and the aero position is worse along the flats and descents.

You'll just have to up your effort a bit, buy an additional bike (the N+1 phenomenon) or get revenge on your mate by taking him down some really gnarly singletrack.

i think you'll find the Epic will go slightly better on the single-track than it does the road!

[clackers]

i think you'll find the Epic will go slightly better on the single-track than it does the road!

Er, thanks, Bob! I'll leave my post as it is, a monument to stupidity and Failure To Note The Key Detail.