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What would be better 1000 backlinks from only PR 1 sites or 10 backlinks from only PR 7 sites?

I think 1000 back links with Pr 1 site, they will help more in increasing SERP than 10 PR 7 links.

As per my seo experience,You may approach for the site which give you rel="Do Follow" is the best.

The more back links you have, the better, this is my opinion. PR matter but also quantity.

1000 PR1

However it will depend on how much boost you get from these individual backlinks. Assuming that 1000 PR1 sites give you a boost of 0.01, your site can reach PR10. In the same time if the 10 PR7 sites gives you a boost of 1.0 each, you still could get to the PR10 mark.

The PR calculation is simple and if you don't make use of the nofollow tag, you are passing a significant PR value to the URL that you are linking.

Eg. 3 sites lets name them ABC, A has a PR2, B PR3 and C PR1

If A links to B and C, A will pass a value of 1 (2 divided by 2), then B becomes PR4 and C PR2.

The bottom line is the more quality backlinks you have, the better for your sites PR.

As percentage my seo experience,You may appropriate for the site which give yourself rel="Do Follow" is the better.

I will also go for 1000 PR1 directories in stead of 10 PR7 directories.

It depends on site quality from which you get link.
Pr is important but do remember search engine gives more importance to different domains but it should be related and do follow.
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If thousands are from relevant niche than definitely for 1000 backlinks from PR1.

1,000 PR1. It wil help in Indexing and will send some traffic also.

Here 1000 PR 1 Links will give you link value than 10PR 7 backlinks
But never forget quality is the best