Agree about reading...but for a little bit of a shortcut, here are a couple thoughts to get you started.
First, decide if you're gonna be recording mostly open with the mics on a stand or if you need to record in a more discreet manner. The decision is usually based on the audio taping policy of most of the bands that you listen to. If you're like alot of people on this list though, once you start taping you gravitate towards bands that allow taping, so you end up putting more stock and investment into the open rig.
For $1k you can get a good start.
For open taping, a good start would be a Fostex FR-2LE recorder. This will run you $400 - $450 new...easy to find on ebay. These are good sounding full featured units straight out of the box and you need no external pre-amp, so it's a so-called 'all-in-one' box. After you get some shows under your belt, you'll probably want to invest another $170 or so to have Busman do his magic on the box...he does a great mod to this box that makes it sound even better.
Next you need cables and a mic stand. Those will run you about $100...maybe $50 for each although if you want some better sounding silver cables right from the start, you're looking at around $100 for a good set of cables. I like silvers and think they're worth the extra $$. There are ALOT of cables on the yard sale, so look no further than that. For a stand, you want to search for a light stand on sites like B&H photo. I recommend one that goes at least 8 feet high. Light stands come standard with a 1/4x26 thread so you'll need hardware to convert to standard 5/8" that most mic mounting hardware requires. Count on another $10 to $15 for the adapters or hardware that goes on top of the stand.
Most important are the mics. For the $400 or so that you have left, there are some great options. Again check the yard sale. Here are some mics that come to mind in that price range for a pair and most of these can be had new for that price (arranged from my own personal favorites down to my least favorites)...
Karma K10mp
AKG 391
Oktava MC012
Avantone CK1
Studio Projects C4
All of these mics sound pretty darn great for $400. If you wanted to spend just a little more and get a LOT of bang for your buck, vintage AKG451eb's sound GREAT and while they don't seem to last a long time around here on the YS, they seem to be plenty available on ebay for around $500 to $550 a pair. Personally, I think that would be what I'd go for because I think they sound more than $100 better than the mics that I've listed that are in your price range, but that's just my subjective opinion.
Finally, once you decide on mics, you'll need shock mounts or at least some hardware to hold hte mics on the top of your light stand. Shock mounts can run you from $0 in the case of some of the mics that have the shocks already included, to maybe $50 apiece. There are plenty of low cost options for shockmounts though. For example, lots of mics are 22mm in diameter and the Joe Meek JM27 shocks work well for those...the JM27's are $20 each.
So, that is some detail that should get you going.
Also, something that MUST be mentioned is that, in addition to read read read, you should LISTEN LISTEN LISTEN. When you're new at this, the very best thing you can do for yourself is spend two or three hours just listening to shows people have recorded on Live Music Archive (
www.archive.org/details/etree) using the same equipment that you are considering buying. You can quickly hone in on what sound pleases you the most for the money you have to spend.
Good luck...hope this helps!