if you're looking at a full susser within your budget, a 4" travel XC bike is for you...not much under $1K thats any good, But a lot of 2006's (still some 2005's out there too) are being marked down, so there will be a lot of good bikes availble in August & Sept....check out the Specialized FSR's, Giant Trance, Trek & Gary Fisher FS'ers,
Also, there's a lot of good used bikes, that usually sell for about 50% of new, are now becomming available...I just pick up a 2004 Santa Cruz Blur in perfect shape for less than half the price of a new one. I asked my LBS to keep an eye out for several models that interested me, and one came up in about 3 months. Just stay off e-Bay as you have to look at MTB's as some are too used
Good Luck