I agree with Covenant. The thousand years should not be taken literally anymore than the thousand used figuratively with God's promise to those who trust in him should be taken literally in the following verses.
Dt 7:9 Know therefore that the LORD your God is God; he is the faithful God, keeping his covenant of love to a thousand generations of those who love him and keep his commands.
PS 105:8 He remembers his covenant forever,
the word he commanded, for a thousand generations,
PS 50:10 for every animal of the forest is mine,
and the cattle on a thousand hills.
We can see that the eternal promise of God is used in conjunction with the expression of a thousand generations in PS 7:9 and PS 105:8. In this context forever and a thousand generations mean the same thing. If we take the thousand generations literally, what will God do with us after the thousand generations are over?
In PS 50:10 every creature is used in conjunction with cattle on a thousand hills. Obviously, the thousand hills is a figurative literary expression to represent every animal as the context of the verse indicates.
Another example is the prophet Isaiah's prophecy concerning Jesus who became the least so that he might become a great nation of believers:
ISA 60:22 The least of you will become a thousand,
the smallest a mighty nation.
I am the LORD;
in its time I will do this swiftly."
It is evident that there are many more believers than a thousand. The thousand represent a number which no man could count:
REV 7:9 After this I looked and there before me was a great multitude that no one could count, from every nation, tribe, people and language, standing before the throne and in front of the Lamb.
The millenium is a figurative expression of the kingdom of heaven revealed in the hearts of believers:
LK 17:20 Once, having been asked by the Pharisees when the kingdom of God would come, Jesus replied, "The kingdom of God does not come with your careful observation, 21 nor will people say, `Here it is,' or `There it is,' because the kingdom of God is within you."
The beast is defeated by the preaching of the gospel which is the sword of Christ's mouth and by the testimony of the saints (armies clothed in white riding on white horses). Emperor worship and the worship of false God's in the Roman empire is replaced by christianity.
REV 19:11 I saw heaven standing open and there before me was a white horse, whose rider is called Faithful and True. With justice he judges and makes war. 12 His eyes are like blazing fire, and on his head are many crowns. He has a name written on him that no one knows but he himself. 13 He is dressed in a robe dipped in blood, and his name is the Word of God. 14 The armies of heaven were following him, riding on white horses and dressed in fine linen, white and clean. 15 Out of his mouth comes a sharp sword with which to strike down the nations.
The beast is released after Christ returns and the bodies of believers are glorified and all believers appear on the earth in glorified bodies.
EZE 37:11 Then he said to me: "Son of man, these bones are the whole house of Israel. They say, `Our bones are dried up and our hope is gone; we are cut off.' 12 Therefore prophesy and say to them: `This is what the Sovereign LORD says: O my people, I am going to open your graves and bring you up from them; I will bring you back to the land of Israel. 13 Then you, my people, will know that I am the LORD, when I open your graves and bring you up from them.
At that time the door will be closed and no one else can enter in.
Lk 13:24 "Make every effort to enter through the narrow door, because many, I tell you, will try to enter and will not be able to. 25 Once the owner of the house gets up and closes the door, you will stand outside knocking and pleading, `Sir, open the door for us.'
"But he will answer, `I don't know you or where you come from.'
Now after the elect has been secured in glorified bodies, Satan will be released to form another world empire to rule those of flesh and blood (We are flesh and bone as our Lord is). They will gather themselves to try to thrust us out, but fire will come down from heaven to judge them even as Jerusalem was judged by fire in the final days of the age of the law.
Ro 2:9 There will be trouble and distress for every human being who does evil: first for the Jew, then for the Gentile
D.E.