You won't be able to buy anything decent for $1000. If you have decent woodworking skills, you should be able to build Joe's design with what you have. For complicated parts, make good templates and route to finish size with guide bushings or bearing bits.
Also, the basic electronics are not really all that complicated. Yes, you will need to spend about $300+ dollars.
As for software, you can run Mach3 for free for up to 500 lines of g-code. This will let you do quite a bit of work while you save up the $159 for it. Maybe then you can put the whole $1K into the machine, and pay for mach3 down the road.