For that same $1000 I have equipped several friends with:
Adcom GTP-450
Adcom GFA-535
Magnepan MMG
powered subwoofer
All of the above were purchased used.
just about any inexpensive DVD player
Even with some decent but inexpensive IC's and speaker cables the total is less than $1000

The above sounds better than just about any receiver based system. The only part that really needs upgrading is the DVD player. Also, everything but the "cheap" DVD player can be sold for little or no loss.