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Why can't it? I've pulled a stuck semi from the snow on level ground of course with my jeep and that only has a 4.0
i was making a joke...and yeah i pulled a stuck s-10 out of the snow for a friend. the driveway was solid ice where i was at and he managed to get his back tire wedged between to rocks and the frame was resting on top of them too...
you should be good on that trailer though. the last few summers i had to haul almost 900lbs of rock for my uncles carpentry business after blowing my cheapo shocks everytime, the only reason my transmission took a dump was because my radiator was so corroded that it wasn't cooling anything. and a 210 mile trip didn't help any.
but like everyone else said just get an axillary trans cooler and you should be good to go.
You will be ok towing 1000lbs. I just towed a 84 thunder bird about 100 miles last weekend. The car and trailer I was haulin it on weighed about 6000lbs together. I have a 90 3.9v6 4x4. I pulled it across a mountain too. It was a little slow but got the job done.