You really should move up to the D90. And if you can't, get a used D80. That will allow you to shoot older AF-D lenses, which are basically still awesome, but since they're not AF-S, they don't autofocus on the D40/D60/D5000.
I don't think you need the 70-200/2.8 at all. And since you don't want to spend more than $1000, it's not even an option. For around half the price you can get a new 80-200/2.8 AF-D. Awesome lens. $915 from Adormama.
But again, 50mm/1.8 is what I use for concert/performance photography. And my images rock.
