Hi Jim,
From my own experience with Panda-impacted sites, I've seen good results from applying meta robots "noindex" to URLs with thin content. The trick is finding the right pages to noindex. Be diligent in your analytics up front!
We had a large site (~800K URLs), with a large amount of content we suspected would look "thin" to Panda (~30%). We applied the noindex to pages that didn't meet our threshold value for content, and watched the traffic slowly drop as Google re-crawled the pages and honored the noindex.
It turned out that our analytics on the front end hadn't recognized just how much long-tail traffic the noindexed URLs were getting. We lost too much traffic. After about 3 weeks, we essentially reset the noindex threshold to get some of those pages back earning some traffic, which had a meaningful impact on our monetization.
So my recommendation is to do rigorous web analytics up front, decide how much traffic you can afford to lose (you will lose some) and begin the process of setting your thresholds for noindex. It takes a few tries.
Especially if you value the earning potential of your site over the long term, I would be much more inclined to noindex deeply up front. As long as your business can survive on the traffic generated by those 1000 pages, noindex the rest, and begin a long-term plan for improving content on the other 8000 pages.