Livedefflo,
This last weekend, I tried kits from Sonor, Gretsch, and Tama, and the kit that really caught my attention is Tama's Silverstar (with 18x14 BD, 12x8 RT, 14x14 FT, and 14x5 SD). The Silverstar shells are solid birch and they are thinner and more resonant than other kits I've played in the $500 to $800 price point. Also, the inside finishing of the Silverstars is much nicer than Safari, Catalina Club Jazz, etc. The only issue with this kit is I checked prices on eBay and a 4 piece shell pack goes for around $599. That's your entire budget right there (though I'm sure a used kit would go for less).
About saving money on cymbals, I second Dream Bliss. At the low end of the Big Three's lines (Zildjian, Sabian, and Paiste), you won't find anything that sounds anywhere near as refined and as musical as Dream's Bliss cymbals. The prices I'm seeing on eBay aren't very attractive though. I can find new Bliss cymbals for less at my local drum shop. I've not checked Craigslist so I'm not sure what the used prices are like. If you can find Bliss cymbals within your budget though, I highly recommend them.