Binary numbers consisting entirely of 1s (i.e. every bit high) are always a power of 2 minus 1. 1 byte (8 bits) is 11111111, or (2^8)-1, or 255. 2^10 is 1024 and so it's the closest you can get to 1000 using only binary 1s.
To indicate the massive disparity possible with this sort of advertising, consider a 250GB hard disk if the manufacturer use 1000s as the KB, MB and GB multipliers. 250,000,000,000 bytes! Unfortunately, if you divide it by 1024^3 (the computer's version of 1GB) it's only 232.8GB. They've nicked 16.2GB off you!
For this reason, some people like to use the abbreviations KB, MB and GB to mean 1000B, 1000KB and 1000MB respectively, and KiB, MiB and GiB to represent 1024B, 1024KB and 1024MB. I get the 'ki'lobyte and 'gi'gabyte ones, but the 'mi'gabyte one grates a little