Let's see. your pack need not be big - i do fine witha about 1800 CI with my blue foam sleeping pad on the outside. YMMV - you may find you still do ok with a small pack if you keep it small.

Sleeping: A blue foam pad from wallmart or a discount store should be cheap and very light
and from your description of what you are doing work fine for you. If *I* can sleep on the ground on one (Hey, I'm a princess) I'm sure you can do fine. Alternatively, get off the
ground trying something like risk's test hammock for about $10:

http://www.imrisk.com/testhammock/testhammock.htm

if you try the hammock, remember your bottom will be cold unless you do something like put a blue foam pad inside it, etc.

Tarp: if you're realy cheap, poly, or a small blue one. If you can find an old school pup tent in a thrift store the nylon fly makes a dandy tarp - just spray it with some waterproofer - most of us use siliconized nylon - you should be able to get a fancy light one like many of us
use for 40 to 60 dollars at campmor or rei.

Clothing: I like my functional stuff. but I'd spend my money on good shoes. Thrift stores on
the other hand are *WONDERFUL* for hiking clothes. just avoid cotton. you can get cashemere or merino wool sweaters that are light and warm and awesome. nylon track pants work very well, and dry quickly. fleece is easy to find there. nylon dress socks work
great as liner socks. You can outfit yourself pretty good in the average thrift store. It's often hard to find the likes of long underwear that isn't cotton, but if you want something
to make you warmer that's light and cheap, depending on your size I'll give you a hint - it's
cheap, disposable, and a lot like thin poly long johns - a pair of womens nylons with the feet cut off. <img src="/forums/images/graemlins/smile.gif" alt="" />

If you're currently no cook - well, you're fine - if you want to go as far as hot drinks or
the like - to a search here going back more than a week, and find a few of the beer can
pot projects - you can make a very nice pot from a large beer can, and a stove from
another couple, or a tealight holder.

Check out the "make your own gear" section of the main part of this site. many ideas
there.

Have fun!