^ done. chillaxed

getting a prosumer body (Canon 40D/50D) with decent glass is possible with a $1K budget.
Probably can't afford any L quality glass, but the EF-S 18-55 IS + 50mm 1.8 would be a good start with a 40D within budget. lo04la, remember you need to buy a memory card as well! If you're willing to do a little digging yourself, you can buy used lenses that are in mint condition. Other than the actual age and (on average 20%) lower price, there's nothing different than buying new and used. When you look around, make sure it includes the boxes and ask if it includes all the original packaging and/or extras like hoods or filters.
Here's some very reputable websites that sell used equipment:
http://photography-on-the.net/forum/ <-- go to their classified:Sell section (You'll have to register)
http://www.fredmiranda.com/forum/board/10 <-- (You'll have to register)
Those are sales made by individual sellers. I've bought & sold many things from the first link and never had a problem.
If you can't find anything there, you can always try craigslist, but I'd leave that as a last resort... especially if you have no camera you can test the lens out on before you buy.
Other than that, you can just buy new at amazon.com BHphotovideo.com or adorama.com for the cheapest prices. Really depends on how much money you want to save.
spixder, I'm assuming your original suggestion was a bit tongue and cheek? Made me chuckle heh. The 1DIII body alone is 7x more than the OP's budget and none of those, save for the 135L (by $20) is less than $1K alone.