Mark,
You asked about going higher than 1:1. My advice is to put that out of your mind for a while. Macro is technically demanding even at 1:1, and the closer you get, the harder it is (e.g., even smaller depth of field). Once you are comfortable at 1:1, get yourself a set of kenko extension tubes to get more magnification. The set will give you from 12 to 68mm of extension. Start with a bit and build up.
I don't entirely agree with Geoff. While more reach is better for bugs, a long, heavy lens is a real pain, particularly if you have a flash rig attached. (more on that in a minute). I do a lot of bug shots and have never used a lens longer than 100mm. I started with a 60mm, but while that is wonderful for flowers, it is really tough for bugs. I mostly use a 100mm now. You can check some of mine out at two links:
http://dkoretz.smugmug.com/Bugs/butt...6947509_d26Rc6 and
other bugs.
A tripod is really important for lots of macro, but I find it often does not help with bugs because if it is warm out, they move too fast for me to get set up. That is one reason I like a shorter lens--it's easier to balance by hand or with a cheap monopod.
What I find essential for bugs is a flash. This takes some doing. Most macro photographers I know do not use ring lights because they produce flat lighting. More commonly, people use a bracket to hold the flash head near the end of the lens, and they put a LOT of diffusing material over the head. Most of the rigs I have seen are DIYs. Mine is a lot like this one (
http://www.dgrin.com/showthread.php?t=189001) except that my diffuser is smaller. Flash will freeze motion, lets you take shots away from glaring sunlight (which makes for washed out colors), and lets you close the lens down enough for a little more DOF. I'll post one below that I took with a 100mm lens, a 36mm extension tube, and a flash.
Personally, if I were you, I would start with a modest lens, probably in the 100mm range, and get some experience to see whether macro is as appealing to you up close (pun intended) as it seems in the abstract. Then invest if it is. I started with a used compact 50 that I bought used for $150, then moved from that to an EF-S 60, and then eventually to the 100.
Re IS: except for the 100mm L macro, no IS available is of much use at macro distances because it corrects for angular rotation. The hybrid IS on the 100mm L also corrects for motion parallel to the sensor and gets 1.5 or 2 stops at minimum focusing distance. I have one and love it, but I would not recommend that anyone invest that much money until they have enough experience to know that they really want to persist with macro.
I hope this helps. It really is confusing at first.