Best Cheap acoustic wall treatments?


I am converting a 12x20 space into a home theater and want to treat the room. The walls and ceiling are drywalled, with thin carpeting on the floor. Are there any inexpensive wall panels or the like that are available? Should I consider draping the entire room in fabric? Thanks for your thoughts.
jmslaw
Ok,I stole this idea from AVAhifi. Go to the redecorating place and ask to see their sample book for accoustic fabric wallpaper. It goes up just like paper wallpaper and is available in different colors and patterns. Becuase there is not much call for it,it is expensive.

You can "paper" the ceiling and doors. That plus carpet should give you a room that absorbs a lot of sound.
Put acousic tile on the ceiling. This is the largest unbroken area available for treatment, and is very effective. Also, an easy diy project. A nice rug on the floor, curtains for any windows, and a few upholstered pieces of furniture, and you are in business.
Sorry to be bearer of not so good news, but acoustic ceiling tiles suck; and they seem like such a good idea in theory, but they do something strange to the phase of the signal; nevertheless, happy if they worked for you just the same...
Geoffkait...I have found that ceiling times (of the proper variety) are amazinly effective for quieting a space...say an office in a noisy production area. I can't think why they would work differently from other types of room treatment, but then I haven't actually tried them. Thanks for the ":heads up".
Owens corning makes a 703 ridged yellow board that comes in 2'x4'x2" up to four 4 inches.This can be covered with a roma wool found at any fabric store.Careful what you wrap the acoustic panel with,if it is not acousticly transparent it will reflect the sound.Acoustic panels being four inches thick will absorb down to 250-500hz.Great for first reflections.Next is tubetraps.I made Jon Risches(he has a web site) and they turned out great and work wonders on exess bass.Then for the back wall you can make RPG skyline diffusers.
My room is based on live end, dead end, where the front is dead and the back is live but diffused.This is what worked for me you can play around with what ever works for you.All these can be made at home for pennies(well...dollars)Good luck!