Bicycling magazine recently reviewed hard tails from Trek and Giant under $800 which were really capable, nice bikes, just as an example. I think many brands probably have competitive offerings in this range. My LBS is a Kona/Rocky Mountain dealer, both have really sweet rides at the bottom range of their lineups. I ride a fully rigid Jones Plus, you can get a complete version for $1799 if you want a terrific do-it-all bike but they're not for everyone.

+1 on the LBS - the brand doesn't matter so much as how it fits and what components it comes with.

If you're looking for ways to save money don't worry about full-suspension, you don't need it and it adds cost and complexity. Low cost components are fine because they're often just as good as their more expensive big brothers, just heavier and you can always upgrade down the road as they wear our or break.

That's my $0.02