For $1,000 you can pick up one of the S&W Performance Center guns. The Model 327 TRR8 or the M&P R8 (same gun in that they both accept upper accessory rails, but the R8 has an integral lower rail and the TRR8 has a removable lower rail) They're both 5" barrels instead of 4" BUT they hold 8 rounds of .357 mag (or .38 sp for plinking or practice) If you're set on 4" consider the S&W TR .45. Same basic idea with the lower integral rail (no upper rail), but shoots .45 acp (6 rounds).
The TR .45 is nice because you can pick up a semi auto pistol in .45 acp and use the same ammo. The nice thing about the TRR8 and R8 is the 8 round capacity which is nice for home defense. You'll still have to buy a holster though, so if 1k is your absolute max, go with the 686 plus (7 rounds) .357. Once equipped with a custom holster (go with one of the top makers, it's worth the wait)you should still be easily under a grand.