The current exchange rate is about Php 40.5 / $1 USD. There have also been some increases in costs of living since 2003. But, you can still live on $1000 USD or less, in the province or city of Cebu. I have a general budget listed in a thread on the Living In Cebu forums, here:

Current Cost of Living, 2007

In the thread, I have tried to provide for most costs involved with living in a rental home in the province. Here is a basic breakdown of my costs, per month:

P 12,000 Rent
P 2,000 ADSL and landline
P 360 Cable
P 16,000 Food
P 4,000 Electricity (average bill)
P 350 City Water (average bill)
P 3,000 miscellaneous (to offset infrequent costs, thus averaging them out)
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P 37,710 is my current estimate for general living costs.

If there are specific questions you may have regarding living in Cebu, or about other costs I may have not listed, please feel free to contact me with them.

cebu@livingincebu.com is my contact address

I will be happy to answer any questions or concerns you may have. After all, I would rather you be armed with as much information as possible, prior to making the leap across that big pond, into a world you may have never visited.