I dont know what kinda shape this car is in but I'm assuming it runs and drives now, you should really consider using the $1000 to get the car in tip top running condition.
First place I would look is brakes, inspect your brake lines for rust and pads for wear. Ive bought several vehicles thats brake lines were dang near rusted in two. Its not fun pushing the pedal only to realize you barely have any brakes, especially if your trying to stop after going real fast in your new hot rod

!
Second place is tires and suspension components, obviously if you need tires, get them before spending any money on go fast mods (if you can keep the best two of the old ones for burnouts!), make sure your sway bar end links and bushings are in good shape, SHOCKS, check tie rods and balljoints, grease everything. Its amazing how much a simple thing like end links and shocks can help with the handling and overall feel of the car.
3rd place is the motor, change the oil, new spark plugs, wires, cap and rotor (bring up TDC and ensure your timing is correct), fuel filter, look for vacuum leaks on all the lines and around the intake manifold, change the PCV valve, check the EGR, check around where your exhaust manifolds bolt to the head and to the pipe for leaks (usually its just a loose bolt). Also look at the entire exhuast system.
Then its on to the tranny. Change the filter and check the rear seal for leaks. Pull the plug on the rear and at least insure there is plenty of oil in there, if dont wanna go ahead and just change it.
Unless you got one in really good shape Im guessing you'll find $1000 worth of things to fix and maybe tools to fix it ( get a good jack and jackstands if you dont have em already). Depending on whats broken or in need of attention, it may be a good idea to upgrade while replacing it (things like ignition parts or suspension components).