CRISPR (clustered regularly interspaced short palindromic repeats) is a new technology for getting synthetic transgenes and other exogenous DNA sequences into target organisms. It's adapted from a bacterial defense ('pseudo immunity') mechanism by which bacteria recognize motifs from pathogens (mostly viruses) and target those DNA sequences for destruction.
The protein machinery that executes the CRISPR-mediated DNA break (Cas9) can be hijacked in more complex organisms, and by providing a target DNA oligomer, can cause a DNA break at a specific genomic locus, and then a recombination of a transgene into the locus.
This is an improvement over current methods, which typically use Homologous Recombination to combine in new DNA sequences, which has a high minimum size requirement and a low efficiency. Everyone in my field (molecular genetics & devolepment) is very excited about CRISPR technologies, though most of our conversations are basically "I'm thinking about getting CRISPR working in my C. elegans, do you have any experience doing it?"
The $1000 genome just indicates that we are nearing the point when it will cost less than $1000 to sequence a full human genome. The first human genome took over a decade and in excess of $1 billion, and was completed circa 2001, so we've come a long way since then. It has exciting implications to personalization of medicine to an individual, based on their specific genotype, and not just their family history.