For true budgetary compliance, as well as quality componentry, I would go with a Surly Steamroller.

Heavy(er) guage steel, comfortable geometry, and typically affordable as a frame. Then build this up with a mix of parts, new or used. Potentially recycle some of that Panansonic.

So:

Steamroller frame: $350

Mid level roadie bar, stem, seatpost: $70-80

Good Wheelset: $250-300

Sugino 75 crank & BB: $150-175

Saddle, Headset, etc.: $100

That should put you at the 1 grand mark pretty easily. Another option would be to check out some IRO frames for comparative thrifty pricing.

-Pete