I have purchased lots of gear new and a fair bit used. The longer I'm in this hobby the more I tend to try to buy most stuff used, though. Many (if not most) audiophiles are inveterate tinkerers who just can't leave well enough alone. So you often see components up for sale that still smell new!
I myself have occasionally been guilty of this...I sold my Onix SP3 tubed integrated after a couple months and have kicked myself for the entire last year!
Let someone else "take the hit" so to speak and buy their gently used stuff for 1/2 price! Audiogon is a great place to shop, and the For Sale forums here and at AudioCircle are also excellent.
If you're willing to consider used I'd highly recommend that NAD C320-BEE. Now that the '325-BEE is out you can get the '320 for around $250. I use one in my PC rig and really like it a lot. It drives a pair of modded
Monitor Audio Bronze B2's and sounds wonderful for the price (about $6oo for the amp & speakers combined). The SP3 is wonderful, too, but if you only want to spend $1,ooo I think you'd be better served putting the money into speakers.
I'll also say for the record that while some will take issue with this, I consider the speakers to the most important link in the chain. You're better off budgeting 60% or so for speakers, then the rest on an amp or reciever and a DVD or CD player. Some will tell you that a dedicated CD player sounds better than a DVD, but even if that's true I don't think it matters which you buy if you're on a budget. DVD players work very well for CDs and give you more playback options (eg concerts on DVD, and some will play SACDs or DVD-A which is nice).
As for speakers, I've long beat the drum for
Monitor Audio. You should be able to find the top
Bronze B models or low to mid
Silver RS models new and used in your price range. However, speakers can be very subjective- what I love you may hate. It's best to try to listen to the prospective models before you buy. That said, some very good ones (IMOHO) that you may wish to investigate, new or used:
Monitor Audio: Bronze B4, Silver RS6, Silver 5i (Note:
SaturdayAudio has the B4 for $399 right now).
PSB: Image 4t, T45
Onix: XS series
Since you're posting on a forum let me assume you have a computer. You might want to forego a CD player in favor of using your computer. If you're computer-savvy you can wring excellent sound out of music off your HD. If you decide you want a CD or DVD, I don't think it matters much what you buy. I'm not saying they're all alike, but you probably won't hear any difference between a $150 Denon and $150 Toshiba. I will say, however, that the very inexpensive DVD players from Oppo are very highly regarded, both for sound and video. If I was buying a new machine under $2oo that's definately what I'd get.
A couple last points- the room will have nearly as much influence on the sound as your speaker choice, and that's not an exageration! I'd highly recommend you look into some acoustic treatments as soon as is practical. And I personally suggest you not waste a bunch of money on expensive cable, either. Salesmen will try to convince you Monster Cable will give you better sound but that's pure BS. Even if 'boutique cables' do sound better, at the entry level that you're shopping for you won't hear any difference between Nordost and AR. Buy something decently made but affordable, like BlueJeans or Acoustic Research. Down the road if you feel like tweaking, then try the exotic stuff.
You're already off to a good start by doing your research at a place like this!
You'll find it a lot easier getting up to speed by availing yourself of the knowledge you'll find here. Good luck with your first system and have fun!