A combination of the right frame rate, shutter speed, lenses, exposure, lighting, etc... make HD look very "film like". It doesn't look much different than SD, just "better". It's a little crisper SD (but no too crisp), little more detail in the shadows, etc...
That being said, for $1000 an SD camera is probably the best option. I'd get the DVX100B. Not falling out of trees at that price, but can be found, and it was the camera everybody I knew recommended when SD prosumer was at it's height. To get HD for $1000 you're looking at a Canon like the HV-40 or a DSLR like the T2i.