FWIW I know the Nikon market best since I'm a Nikon guy and there are some good deals out there on D200s which are very nice cameras. I've seen solid used bodies going for 6-700 often with a grip included. I'd also encourage you to look at the Nikon D80 & 90, they should be in you budget if you find a good used or refurbished body. D300's can also be found for reasonable money because of the release of the D300S which essentially adds video, but probably are still out of your $1K budget, particularly if you need glass. The Canon market should be similar as they just announced the 7D and the 50d has been out a while. I just can't speak to the going prices for gear that should be in your target range like 20 & 30Ds or the XTi.
A Coworker was right about where you are 4 months ago, I steered him to a D200 and he picked up a Tamron 17-50/2.8. He really wanted to go with a kit lens but I convinced him it was worth the $$ to go with quality glass. He wound up right around 1K with the body, lens and a spare battery. He is also so glad he sprung for the better lens and he is really only just getting in to Photography and can notice the difference. You will love the flexibility and creative control you gain with a DSLR. It brings photography alive again.