http://www.pbm.com/~lindahl/cariadoc/perfect_armor.html
Step 1 - Go to that site, read it twice.
Step 2 - Look up leather in your phone book, call everyone listed, and ask if they have scraps of 6-8 oz. or 8-10 oz. vegetable tanned leather available.
Step 3 - Get your supplies. Go to a crafts store. Buy a leather punch that can punch smallish holes and a block of parafin wax from the candlemaking section. You'll also need a good, sharp utility razor or box cutter, some spare blades, some kind of hammer, and something to put under your work piece when you're punching holes. I use an old cutting board so as not to scar my work bench. Finally, you'll need a few hundred feet of some strong, durable cord or lace. I use nylon paracord that I can get for about a dollar per hundred yards at a surplus store.
Step 4 - You'll need a double boiler to melt the wax in. Not that molten wax is messy as all get out and will get everywhere, so don't do this in a nice kitchen. Also, parafin wax burns if you don't treat it right, so be very very careful and keep a fire extinguisher handy. Alternately, don't wax harden the scales and then with unhardened leather.
Step 5 - Follow the instructions in the website. Cariadoc provides a pretty good explanation of how it all works, how it laces, and so forth.
The upshot is that you can do it very inexpensively. Fifty dollars is a good budget if you can borrow tools. And you get to learn something about leather working. It's also fairly easy and forgiving, since what you're really doing is cutting out one scale from a pattern about 200 times and punching holes in it, then lacing all the scales together so that they form a tunic. Get a buddy who does leather working or repairs to stick a few buckles on it, or lace it closed, and you're good.
And it makes great armor. It's fairly lightweight, it briefs well because it's constructed of many overlapping scales instead of a single plate, and being waxxed, it's pretty durable. If it gets bent out of shape you can heat it up in order to melt the wax then reshape it to get it back to fighting trim. If you go with 8-10oz. leather then you should have two plates overlapping at any given point, for 16-20 oz. of rigid leather protection. I have no idea what that counts as in alliance, but from experience it makes getting smacked in the belly with an oak rod upleasantly stingy instead of painful and bruising. Lamellar scale is also very modular. You can make extra scale-maille and add it to the bottom of the tunic to cover your legs, or build shoulder guards out of it. I've heard of particularly clever monkeys who have worked out how to make helmets out of the stuff.
Eitherway, that's my two cents on the good/cheap armor issue. Best luck!