My question is if I am on a 1200 calorie limit and I exercise everyday and burn 1000 calories does that mean i am depriving my body? should i up my calorie intake to 2200? I'm a little confused.

Are you saying you burn 1,000 calories just from exercising? If you really do exercise every day and do burn that much, and only consume 1,200 calories a day, yes, you need to eat more. But, if you really were doing that, it would probably be sheer hell, you would have insane cravings and would feel extremely weak. So, I would have to say, IF that were all true, yes you are depriving your body, but I would be highly surprised if it were in fact true. What are you doing for exercise?

Well I have Dance Dance revolution and it had a fitness section where you plug in your weight and some other stats and it will gauge how many calories you burn. I honestly don't believe it is totally accurate. Even so, if it was even 200 calories off it is still an impact. I play on a cycle of 5- 18 songs, so thats about 15 - 25 min straight (like 20 seconds between each song) for about 2 hours. I have fun with it