Nikon D700 and choosing lenses?

I want to buy Nikon D700 and a portrait lens (good for studio and outdoor), prime or zoom? Is there a lens that does portrait and macro (close up)?

Any recommendations? My budget for the lens is around $1000.

By the way, what are the concern in finding lenses for FX models? And, can I use my DX lenses for FX models?

You can use DX lenses on a D700 but it will automatically crop the image to fit the smaller image circle of these lenses… So there's a very strong drawback.

Hmm… Macro and portrait in one lens… The Micro Nikkor 105mm/2.8 should do nicely then:
http://www.adorama.com/...AFVRU.html
It's a little bit long for portraits (105mm as opposed to 80mm on full frame) but still very viable, and it's a fine macro lens. For shooting live bugs with it that are easily scared away you might need something longer though. Also, with e.g. A fast 85mm prime lens you could get even shallower depth of field. But f/2.8 at 105mm already won't be bad either.

Jens is right.

When I shot 35 mm film, I used the Nikkor 105 mm f/2.5 lens exclusively for shooting portraits

That said, the 105 f/2.8 will be an excellent lens. You just will not be able to whisper to your models as you can using the 85 mm Nikkor

Couple of macro/portrait choices - Nikkor 60mm f2.8 macro and the 105mm f2.8 macro. For skittish creatures the 105mm focal length will give you more room between the lens ans the subject. Both would make excellent portrait lenses.

Other portrait choices are the good old 50mm f1.4 (or f1.8) or the 85mm f1.4 (or f1.8). Obviously the f1.8 version are cheaper. Another good lens I use a lot in studio & on location is the 24-70mm f2.8. Might be a bit out of budget though.

FX lenses are pricier than DX lenses, but yes you can use your DX lenses on the D700 - it automatically detects a DX lens is mounted & just uses the centre portion of the sensor - this results in a 6MP camera in effect, instead of the native 12MP.

The Nikon 60mm f/2.8 micro is superb and cheap.

The Nikon 24-120mm f/4 VR is excellent and extremely versatile, but $200 over budget.
It is not a macro, but will focus very close.

The Nikon 105mm f/2.8 VR macro is a clunker. I sold mine, it does have issues.

If you decide on a 105mm macro, get the Sigma, it's better and inexpensive:
See 1st link.

A phenomenal lens that's worth looking for on eBay is the older Nikon 105mm f/2.5ai or ai-s. It should cost less than $200 and is tack sharp at f/2.5 -- great for portraits!
See 2nd link.

DX lens on FX? It'll work poorly, and a waste of time.

According to me you can have a Nikon 85mm f/1.4D AF Nikkor Lens. Some of its features are:-
1.85mm focal length is considered the optimal choice for portrait work using a 35mm SLR camera
2.High-performance, fast, maximum-aperture, NIKKOR telephoto lens
3.Internal focusing for fast AF operation
4.Rounded diaphragm makes out-of-focus elements appear more natural
5.Fast f/1.4 aperture is helpful in shooting indoor sports or stage productions
Check it out. And all the best.