My personal input:
DONT BUY THE CHEAPEST BASS YOU CAN. You can work around any defects in craftsmanship in a shoddy instrument, or you can just play a good instrument. I've been cut moving around the neck on my friends' low end Ibanez bass by poorly placed frets. Same thing on his Squire PBass. The last thing you want is for the instrument to frustrate you like the cheap lines I have played did.
Also, you can think of musical gear as an investment, at least the good stuff. If you do throw down any money for a little combo and a Squire, remember that those are yours forever and no one would ever be stupid enough to even pay you half of what you just paid for it. This isn't that they are bad, but the resale is. I don't know if you are only spending a $1000 because you just want to dabble or its all you have to your name, but if you buy a bass on the cheap that you can always sell again at that price or even a profit, you can't loose.
I say get the best used bass within your budget, get a used combo or halfstack on craigslist, and for +/-$1000 you should have a great set up for someone who doesnt really play the bass =p