This YouTube video shows someone using a homemade plasma cutter they built for around $260: http://www.youtube.com/watch?v=6W3tLDBdPQQ
However, there is a very dangerous safety issue with the schematic; no isolation from mains power.
A transformer should be used. I don't know where to find one of sufficient power handling capability offhand.
i love plasma cutters, they are amazing. I've used one a few times now, it ceases to amaze me how they cut through steel with no physical resistance you would get using a saw. It just feels odd. Plasma cutters while simple in design, are quite technical in the way they work.