look on ebay. I picked up a really nice collapsible support system, and a 12 ft. wide paper backdrop for around $150, both brand new. The seller (a photography supply company) had about a zillion different backdrop colors too - I went with white for versatility's sake, but the sky's the limit. I definitely recommend paper, unless you want to be steaming out your backdrop for hours to get rid of creases and wrinkles.
Good question, Margie! I'm no pro, but when I used to shoot, I preferred paper seamless to fabric. No wrinkles to steam out, no washing necessary. Bind the edge with gaffer's tape so it doesn't tear as easily, and when it gets dirty, cut that part off and roll out more. As far as stands go, I found a stand for $60 that looks sturdy, but has anyone dealt with this particular vendor? http://www.stillshot2.com/Shopping.idc?ProductID=23