The Azumi, which is made by Altus, has had some fantastic reviews. For $1200 or less, it fits your budget.
I would definitely give one a try, but I wouldn't just order one and keep it if I liked it. You will definitely want to arrange try-outs of several flutes in your price range, preferably side-by-side if possible.
You probably wouldn't go too far wrong with a student Pearl, Yamaha or Jupiter with a handmade headjoint. I found my Miyazawa HJ on eBay used for $350, and an entire Yamaha (200 series) flute with handcut headjoint for $400.
But do try whatever you possibly can-
Pearl, Jupiter, Jupiter DiMedici, Yamaha, and the 'handmade' brands' inexpensive versions, ie Burkart 'Resona', Powell 'Sonare', Haynes 'Amadeus', Altus 'Azumi', etc.
I would probably stay away from anything Gemeinhardt, and at your playing level you can do much better than the Emerson and Armstrong flutes that would be in your price range.
Also look here, there's great advice about flute shopping:
http://www.jennifercluff.com/buying.htm
There ARE reputable online flute dealers. There ARE deals on eBay. The trouble is that there are also ripoffs, scams, etc to be found. I would ask a flute teacher in your area, if you can find a GOOD local shop that could get flutes on trial for you, you will save a bunch of money in shipping. And having a local shop with a good tech will make warranty work, as well as minor repairs, MUCH less of a pain, and probably cost less to nothing. A good local tech will certainly work on any good 'real' flute you bring in (with exception to cheap imports made of soft metal that can't be repaired), they will probably charge you less if you bought the flute in-house.
Online, you can try Liz at Winds 101 (I've also dealt with her), Nancy at Flutestar.com, (also dealt with her), Carolyn Nussbaum of Carolyn Nussbaum music, Ginger Hedrick of the Flute Exchange, and Flute World.
Oh, poo, Ginger Hedrick sold out. But working directly with people that have specifically matched flutes with players as they upgrade will probably be very helpful.