Do you currently do any reloading???
If so then some of the expense is out of the way. If not, set aside @ least $300 for reloading gear. This will get you the bare minimum you need to get started.
Now go buy yourself a Savage. Something w/a heavy bbl. If your not afraid of the mags, go w/the 300 WSM
. If you want something w/a little less punch, go w/a .243. Savage has a 9.25 twist bbl and you should be able to stabalize a 105 gr bullet for 1000 yd stuff. They make a 12FV that can be had for about $425.
As far as optics go, it's going to be tough. I would maybe look @ the Tasco Super Sniper. They are fixed power but I've heard they are very good for the money and track very well. Might also want to look @ the nikons.
I'm sure others will have some more advice for you. Just hang around here, read alot of old posts and you'll learn a lot. Don't rush your descision. Think it through and get the most out of that $1200.