Personally, I would go for a Canon 400D (£437 body only, but with £50 cash back to the end of August, although it does take a good while to get it) a Sigma 18-50mm EX f2.8 (£280), Sigma 10-20mm (£290 ish).
I think that is £1007, you can then spend the £50 cash back on a Lowepro bag, as...