I'm in the middle of making some panels from Knauf RS60, white satin (whatever cheap close-weave fabric is on offer will do), and 6mm MDF board cut into strips to make wooden frames. To keep the cost down, I just glued the frame pieces together with wood glue (stick a 20x20mm block in each corner). That came to about £10 per 120x60cm panel (4'x2'). These materials will make some very light (and rather flimsy) panels which you can hang on a wall as easy as a painting.
The details of room treatment get quite complicated but, to start, off plan to break up any large flat surfaces (including the ceiling) with a bunch of broadband absorber panels, like the ones I've described.
And read up about bass traps. An open door makes a great bass trap, incidentally, if you have that luxury.
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