Find a used touring bike preferably off of craigslist or something local (vs. ebay) and spend the rest on quality racks and panniers. $1000 should get you a pretty long ways.
edit: you can sometimes find trek 520's or cannondale t800's used by people that planned a big trip and didn't go. Thats what I did and it worked out fine, the bike had very few miles on it. Good luck!