I really love this site. And it does qualify as cheap and/or free.
I found it by accident, really. I was re-doing my Squidoo pages (later I'll add more...) and one of those pages was a craft site about recycling clothes. One of the links there led me to this GREAT SITE!
Here it is:
http://www.cutoutandkeep.net/projects/category/art_and_craft_supplies
The one I saw talked about taking old T-shirts and making them into new kinds of shirts. But I saw in a minute that there are all kinds of great things here.
I hope you like it too!
Here is the page I found it on:
http://www.squidoo.com/how-to-recycle-clothes#module17754722