You can absolutely get your machine running for under 1k. If you are industrious, I'd say that under $500 is even reasonable. If you are looking also for instruction on building machines, check out David Gingery's line of books, "How to build a metal shop from scrap". Just punch Gingery Lathe into google and check the links out. Do this early though, or you may not get to sleep until the wee hours!
Stop talking about it and do it already!!!!!
(Note: The opinions expressed in this post are my own and are not necessarily those of CNCzone and its management)