I was pretty financially challenged when it came time to decorate a nursery, and even their rooms as they got older. The crib was a grandparent gift, and I spent time searching garage sales and used furniture stores for other necessities. Dollar bins for organization, and it all came together well!
Ouch! $1,000 for a nursery? We had less then $100 in ours. Crib came from my sister, we had an old dresser we painted. Painted the wall and added Tinkerbell wall clings to the walls. (I love Tink) Made the curtins out of fabric I already had and added some cute things we picked up at yard sales and scrubbed.
Oh and I do love the way they did theirs but that's a ton of money for a room the kid won't even care what it looks like for several years.