I think $1000US will get an UL Hiker off the ground nicely. With some Ebaying, thrift store hunter/gather, and web bargaining, you could cut that considerably.
I've written before about doing a cost per ounce analysis to get the best bargains. The idea is to look a number of items that can bring the cost and weigh down, offsetting some heavier items that would need more expensive replacments.
Sleeping bags are where this came up for me. Contrast a 20F synthetic bag by North Face, Marmot, etc, vs. a 800 loft down bag by Western Mountaineering. You can buy the synthetic bag for a lot less and offset the increased weight with lighter items with good cost/weight ratio like cook gear, pack, shelter, etc.
Items with good cost/weight ratios:
SMD Gatewood Cape
GoLite Gust and Jam packs
Anodized aluminum cookware
Platypus bladders
Coleman F1 stove (butane)
Pepsi can stove (alcohol)
Beer Can stove (Esbit)
County Comm LED micro light
This does help keep cost down for a given weight. I think a 12 pound base weight can be reached with resonable cost. If you want the lightest gear available, cost takes second fiddle.
I sat down and made a list. It's fairly accurate. The items with an asterisk were actually part of trades and my real cost was ~1/2, but I listed the marked/cash price for the item as found in the store. Note that this is a skin-out kit. Weights are mostly published values and pretty close I think.

I made another list showing similar items at prices I found on the web today. I'm sure it could improved on, but it is a real-world-no-smoke-and-mirrors gear list.

Update: add $25-$30 for maps and compass.