Rich, I would look at allocating you monies a little different then what you have. Here are my suggestions
Pack - $50 to $75 (save up to $100 from your list), buy used lightweight pack on the site or others.
Shoes/Boots - $50 (save up to $100 from your list), I picked up a good pair of trail runners, New Balance last year at sports authority. Look around, you don't need the most expensive pair (I also picked up a new pair of Inov8's for $50 also- you can find deal all the time). You don't need a waterproof boot/shoe, they will get wet and then not dry out. Buy a good mesh trail runner and with a good wool sock you will be just fine. If you lighten you load (and Budget has nothing to do with lighter weight) you will not need BOOTS! You will be far better off with a lighter pack weight and lighter foot wear.
Sleeping Bag - $250 to $300 (use the saved money from above), buys a good synthetic or down (my preference) you can find them newly used or new on this site. It's worth spending the money here, don't scrimp!
Tent - $50, there isn’t a tent on the market for $50 that is worth buying! But you can get a GoLite poncho Tarp for $50 and they only weigh 10oz. This will also work as your rain gear, saving you more money and weight!
Depending on the bugs you might need a bug bivy- like the A-16 bug Bivy, you can find them new/used for about $35 on the site(Use $35 of the saved money for a A-16 bug bivy if needed).
My list has the same total budget as yours but it puts the money to work in a more efficient manner
Go buy the book “Lighten Up” by Don Ladigin and illustrated by our own Mike Celland. It will show you how to make the transition to lightweight without spending the money you would on regular gear.
You will spend the same amount of money or more for heavy gear as light weight. Just be smart about what you buy and do your research!